Ralph, the chief executive officer of XYZ Corporation, is attempting to convince the board of directors to expand the company. The owner and stockholders of XYZ feel that the company is big enough and does not need to expand. In this example:
A) Ralph is the agent, and the board of directors is the principal.
B) Ralph is the agent, and the stockholders are the principal.
C) the owner is the agent, and the board of directors is the principal.
D) the stockholders are the agent, and Ralph is the principal.

Question

Quizplus · Accepted Answer

Ralph, as the CEO, acts as an agent for the stockholders, who are the principals, as they own the company.

Ralph, the Chief Executive Officer of XYZ Corporation, Is Attempting