When a Person Hires a Worker to Make Improvements on Real

question 20

Multiple Choice

When a person hires a worker to make improvements on real property but is later unable to pay the worker, the worker can create a[n] ________ lien on the person's improved real property.

• A) Mechanic's
• B) Approved
• C) Constructive
• D) Improvement
• E) Acknowledged

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Definitions:

Principal-Agent Problem

The conflict that arises when the goals of principals, such as shareholders, differ from those of agents who make decisions on behalf of the principals, like executives.

Democratic Government

A form of government in which power is vested in the hands of the people, who can vote to elect their leaders and influence legislation.

Principal

The original sum of money borrowed in a loan or invested, distinct from interest or profit generated from it.

Government

An organized group of individuals that has the authority to rule and govern a specific geographic area or country, establishing laws and policies.