Why Can't an Agent Take an Opportunity Meant for the Principal

question 74

Essay

Why can't an agent take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration of an agent's violation of his or her duty of loyalty.

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Definitions:

Make-Or-Buy Decision

A strategic choice businesses make between internally manufacturing a product or purchasing it from an external supplier.

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the expertise of the main business.

Vertical Integration

describes a strategy where a company expands its operations into different stages of production within its industry, often to control the supply chain or reduce dependency on suppliers.

E-Procurement

The electronic procurement process that utilizes online systems and technology to streamline purchasing, reduce costs, and enhance vendor management.