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Lester Discussed a Business Opportunity with Stewart and Asked Stewart

Question 44

Essay

Lester discussed a business opportunity with Stewart and asked Stewart to sell 1,000 shares of stock Lester owned to finance Lester's investment in the venture.The next day,the bottom dropped out of the stock price,but Stewart sold the shares before Lester talked to Stewart again.Discuss the agency relationship and the effect of the unexpected drop in stock price.

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After an agency agreement is negotiated,...

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