The Role of the Agent in a Principal-Agent Relationship Is

question 83

Multiple Choice

The role of the agent in a Principal-Agent relationship is to

• A)arrange for the principal to provide goods or services to a customer.
• B)provide the goods or services for a customer.
• C)market the principal goods and services to prospective customers.
• D)develop and maintain goodwill of the principal's customers.

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Definitions:

Stock Splits

A corporate action to increase the number of shares, thereby reducing the price per share without altering the company's market capitalization.

Stock Dividends

Dividends paid to shareholders in the form of additional shares of the company's stock, rather than cash.

Economic Value

The value of an asset, product, or service determined through its ability to generate income or benefits for its owner.

Stock Dividend

A distribution of extra shares as a dividend, rather than distributing cash.