In the principal-agent relationship, the principal is
A) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.
B) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
C) the owner of a resource that has hired a third party to act in the best interest of that third party.
D) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party.
B
You might also like to view...
The table above shows the revenue figures for the top four firms along with a total for the remaining firms in the fast-food industry. What is the four-firm concentration ratio for the industry?
A) 200 B) 20 percent C) 25 percent D) 80 percent E) 100 percent
The MRP curve is the resource demand curve for:
A. neither the purely competitive nor the imperfectly competitive seller. B. the imperfectly competitive seller but not the purely competitive seller. C. the purely competitive seller but not the imperfectly competitive seller. D. both the purely competitive and imperfectly competitive seller.