Which of the Following Is an Example of an Agent's

question 105

Multiple Choice

Which of the following is an example of an agent's breach of fiduciary duty to his principal?

• A)An agent for the vendor makes a profit on the transaction he negotiated for his vendor above his commission and doesn't tell his principal/vendor.
• B)An agent negotiates a higher price than the highest sale price reasonably possible at that time.
• C)The agent takes presents from the third party and passes them on to the principal.
• D)An agent for the vendor collects a commission from the purchaser but told his principal and obtained his consent.
• E)An agent discloses to his principal/vendor that he is giving some of his commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.

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Definitions:

Loan Proceeds

The amount of money provided to a borrower by a lender, typically for a specific purpose or project, which the borrower is obligated to repay under agreed terms.

Compounded Quarterly

A method where interest earned is calculated and added to the principal amount every quarter, leading to interest on interest.

Future Value

The value of an investment at a specified future date, based on an assumed rate of growth over time.

Rate of Interest

The percentage at which interest is charged on a loan or earned on an investment over a specific period of time.