Which of the Following Is an Example of an Agent's

question 99

Multiple Choice

Which of the following is an example of an agent's breach of fiduciary duty to his or her principal?

• A)An agent for the vendor makes a profit on the transaction he negotiated for his or her vendor above his or her commission and doesn't tell the principal/vendor.
• B)An agent negotiates a higher price than the highest sale price reasonably possible at that time.
• C)The agent takes presents from the third party and passes them on to the principal.
• D)An agent for the vendor collects a commission from the purchaser but told his or her principal and obtained the principal's consent.
• E)An agent discloses to his principal/vendor that he or she is giving some of his or her commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.

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Definitions:

Coupon Interest Rate

Yearly rate of interest on a bond, denoted as a percentage of its principal value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, encompassing all interest payments and the repayment of principal.

Par Value

The face value of a bond, or the stock value stated in the corporate charter, often used as the basis for accounting of the bond or stock.

Annual Coupon

The annual coupon is the interest payment that a bond issuer makes to bondholders each year, expressed as a percentage of the bond's face value.