In the Principal-Agent Relationship, the Agent Is

question 19

Multiple Choice

In the principal-agent relationship, the agent is

• A)the owner of a resource that has hired another party to act on his behalf.
• 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.

---

Definitions:

Mumford

A scholar known for contributions to the understanding of leadership, creativity, and problem-solving.

Corporate Executives

High-ranking officers within a corporation who are responsible for making critical decisions, steering the company's strategy, and managing organizational operations.

College Business Students

Individuals pursuing academic studies in business disciplines at a college or university.

High School Principals

Educational leaders who manage the operations of a high school, including academic programs, staff, and student policies.