The Principal's Duties to the Agent Do Not Include

question 3

Multiple Choice

The principal's duties to the agent do not include

• A) the duty to compensate the agent as agreed on.
• B) the duty to cooperate with the agent.
• C) the duty to exercise reasonable care to avoid placing the agent in harm's way.
• D) the duty to always put the agent's interests first.

---

Definitions:

Bottom-Up Budgeting

A budgeting method where the budget is created with input from lower-level employees, leading up to a total company budget.

Extrapolation

The process of estimating, beyond the original observation range, the value of a variable on the basis of its relationship with another variable.

Previous Year's Budget

The financial plan containing income and expenditure for the prior year, used as a reference or benchmark for current financial planning.

Forecasting

The process of predicting future events, trends, and behaviors based on historical data and analysis.