In a Situation in Which There Is a Conflict of Interest

question 73

Multiple Choice

In a situation in which there is a conflict of interest between an agent who is authorized to make a certain transaction for a principal and the principal,the agent is allowed to:

• A)engage in self-dealing transactions if the principal and the third party are unaware of the transactions.
• B)compete with the principal regarding the agency business.
• C)act as agent for both parties to a transaction without disclosing the double role to both principals.
• D)act as a middleman and serve both parties to a transaction without notifying either principal.

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Definitions:

Exponential Smoothing

A technique used in time-series analysis to smooth data and forecast by giving greater weight to more recent observations.

Exponential Smoothing Forecast

A time series forecasting method that applies decreasing weights to older data.

Previous Forecast Value

The forecast figure from the immediately preceding time period, used as a point of reference or comparison for current forecasting activities.

Operational Variations

Fluctuations in operational performance that can result from a variety of factors, including changes in demand, supply chain issues, or equipment failures.