When an Agent's Breach of Duty Causes Harm to the Principal

question 49

Multiple Choice

When an agent's breach of duty causes harm to the principal:

• A)the principal may deduct the loss from the amount due the agent.
• B)the principal can bring an action in court even if compensation is due.
• C)the principal is not liable to compensate the agent,even if the breach is serious enough.
• D)the principal is liable to show actual damages to avoid having to compensate.

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Definitions:

Declaration Date

The specific date on which a company announces an upcoming dividend payment.

Board of Directors

A group of individuals elected by shareholders to oversee the activities and governance of a company.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash payments or additional shares.