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

question 34

Multiple Choice

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

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

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Definitions:

Flash Reports

Brief interim financial reports, often produced shortly after an accounting period closes, providing an early estimate of financial performance.

Financial Information

Data pertaining to the financial performance, position, and changes in financial position of an enterprise.

Performance Criteria

Standards or benchmarks used to measure and evaluate the efficiency, output, or performance of an organization or individual.

Business Unit Margin

The amount by which the revenue of a specific business unit exceeds its costs, expressed as a percentage of revenue.