Author Question: Which of the following is true of the agency relationship? A) It is always a financial ... (Read 68 times)

Deast7027 · **on:** Jul 6, 2018

Which of the following is true of the agency relationship?

A) It is always a financial relationship.
B) It requires that the principal acts in the best interests of the agent.
C) The agent and all employees who are subordinate to the agent are not responsible toward the principal.
D) The principal has certain responsibilities toward the agent.
E) The relationship is such that principals are not required to monitor agents.

Question 2

Which of the following accurately describes the concept of agency?

A) It is a system by which economic advantages are shared across a community.
B) It is an agreement between two or more people to work together to achieve a common goal.
C) It is a cause of variances in a process that is natural to or inherent in the process.
D) It is a financial relationship between an owner, or principal, and the owner's hired manager.
E) It is a process through which new members are socialized into the traditions of a particular community.