Which of the Following CORRECTLY Characterize Principals and Agents in Important

question 73

Multiple Choice

Which of the following CORRECTLY characterize principals and agents in important examples of the principal-agent problem?

• A) In the doctor/patient relationship, the patient is the principal and the doctor is the agent.
• B) In the lawyer/client relationship, the client is the principal and the lawyer is the agent.
• C) Both of the above answers are correct.
• D) Neither of the above answers is correct.

---

Definitions:

Brick and Mortar

Traditional physical retail outlets and buildings, as opposed to online or virtual stores.

Efficient Funds Transfer

A method of transferring money between accounts or institutions swiftly and with minimal costs, aiming to reduce transaction times.

Online Sales

The process of selling goods and services through the internet.

Retail Storage

The process or space used for the keeping and management of goods or merchandise in stores.