In a Principal-Agent Relationship

question 38

Multiple Choice

In a principal-agent relationship

• A)the principal wants the agent to act on her behalf
• B)the agent wants the principal to act on his behalf
• C)the principal wants the agent to act on the behalf of others
• D)the agent wants the principal to act on the behalf of others

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Definitions:

Directors

Directors are individuals elected by shareholders or appointed by other directors who oversee the management and decision-making processes of a corporation.

Right Of Full Participation

The entitlement to engage actively and fully in a process or activity, without restrictions.

Resolutions

Formal decisions or statements adopted by an organization or legislative body through a voting process.

Cumulative Voting

A method of voting for corporate directors that allows shareholders to multiply their shares by the number of directorships being voted on and to allocate their votes among the candidates as they see fit.