What Type of Principal Is Bobby

question 57

Multiple Choice

What type of principal is Bobby?

• A) Disclosed
• B) Undisclosed
• C) Partially disclosed
• D) Unidentified
• E) Legally nonexistent

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Definitions:

Prevalent

Widespread in a particular area at a particular time; commonly occurring or accepted.

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.

Agent

A person who is performing an act for another person, called the principal

Principal

A person for whom another person, called the agent, is performing some act.