In Corporations, a Principal-Agent Problem Can Arise When

question 376

Multiple Choice

In corporations, a principal-agent problem can arise when

• A)the shareholders are the principal and the managers are the agent.
• B)the board of directors is the principal and the managers are the agent.
• C)the shareholders are the principal and the board of directors is the agent.
• D)All of the above are correct.

Describe the doctrine of estoppel and its implications for enforcing nontraditional promises.

Comprehend the legal implications of accepting less than owed and its effect on debt obligations.

Analyze the legal aspects of gratuitous acts and their enforceability without consideration.

Evaluate the legal responsibilities arising from professional services, including those provided voluntarily.

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Definitions:

Secured Interest

A legal claim or lien on collateral that has been pledged, often in relation to loans, to secure payment.

Deposit

A sum of money placed in trust or paid as a first installment on the purchase of something or as a guarantee of the buyer's intent to complete the purchase.

Refused Delivery

A situation where the recipient refuses to accept delivery of goods or packages.

Remedies

Legal means or measures available to a party to enforce a right or redress a harm or violation.