Under the principal/agent relationship theory, an agent _____.

Question

Quizplus · Accepted Answer

The principal/agent relationship theory dictates that the agent has a fiduciary responsibility to act in the best interests of the principal. This means that the agent must prioritize the interests of the principal above their own interests and cannot engage in any activities that could harm the principal. While the agent must agree to the terms contained in the contract, they are not necessarily limited to only working for one principal and are expected to use their best judgment in carrying out their duties. Therefore, the correct answer is B.

Under the Principal/agent Relationship Theory, an Agent _____