In the Principal-Agent Relationship,the Principal Is

question 77

Multiple Choice

In the principal-agent relationship,the principal is

• A)the owner of a resource that has hired a third party to act in the best interest of that third party.
• B)the person who is placed in control over resources that are not his own,with a contractual obligation to use these resources in the interests of some other party.
• C)the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.
• D)the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.

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Definitions:

Negative Consequences

Unfavorable or harmful outcomes resulting from an action, condition, or behavior.

Festinger and Carlsmith

Researchers known for their 1959 cognitive dissonance experiment, which investigated the effects of forced compliance behavior on changing attitudes.

Attitude Change

The process in which an individual's feelings, beliefs, or behavior towards a particular entity or topic shifts over time.

Paid for Lying

The act of receiving compensation or reward in exchange for deceit or delivering false statements.