Examlex

Solved

In a Principal-Agent Relationship, Moral Hazard Might Occur If

question 30

Multiple Choice

In a principal-agent relationship, moral hazard might occur if


Definitions:

Duties

Obligations that individuals or entities are required to perform, often under the law or by contract.

Honesty

A moral character trait that entails being truthful, trustworthy, and sincere in one's thoughts, speech, and actions.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property, like a trustee or legal guardian.

Legal Obligation

A duty enforced by law, requiring an individual or organization to follow or avoid a particular course of action.

Related Questions