Which of the Following Statements Is True Regarding a Principal

question 39

Multiple Choice

Which of the following statements is true regarding a principal?

• A) A minor or an incompetent person can be a principal.
• B) A principal is a person who by agreement with the agent acts on behalf of and subject to the control of the agent.
• C) A principal's obligation is to act only in the interest of the agent.
• D) A principal must have capacity to contract.

---

Definitions:

Contingency Theory

A management theory that suggests the most appropriate form of managerial action depends on the specifics of the situation at hand.

Leadership Style

Refers to the manner and approach used by a leader to guide, direct, and influence the behavior and work of others.

Hersey-Blanchard

A situational leadership model developed by Paul Hersey and Kenneth Blanchard that suggests the need to adapt leadership style based on the maturity level of followers.

Situational Leadership Model

A leadership theory that proposes the most effective leadership style varies according to the situation and the maturity level of the followers.