Which of the following is likely to be an example of a principal-agent relationship?
A) The relationship between two colleagues
B) The relationship between a teacher and her student
C) The relationship between an employer and a worker
D) The relationship between two nations

Question

Quizplus · Accepted Answer

The relationship between an employer and a worker is a common example of a principal-agent relationship, where the principal (the employer) hires the agent (the worker) to perform certain tasks on their behalf. The agent is expected to act in the best interest of the principal, while the principal retains ultimate responsibility for the actions of the agent.

Which of the Following Is Likely to Be an Example