Which of the Following Is True of the Relationship Between

question 2

Multiple Choice

Which of the following is true of the relationship between an agent and a principal?

• A) An agent can promote his own interests over the principal's.
• B) An agent is not liable to the principal for any loss or damage caused by negligence.
• C) An agent acting in bad faith can make profits for himself during the relationship with no legal implications.
• D) An agent has a duty of loyalty and good faith toward the principal.

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Definitions:

Market Fall

A significant decline in the stock market, which can be triggered by various economic, political, or global events.

Intrinsic Value

The actual, underlying worth of an asset, independent of its current market price, based on its fundamental characteristics.

Technical Analysts

Professionals who evaluate securities by analyzing statistics generated by market activity, such as past prices and volume, to predict future price movements.

Fundamental Analysts

Fundamental analysts evaluate securities by attempting to measure their intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.