The problem of motivating one party to act in the best interest of another party is known as the principal-agent problem

Indicate whether the statement is true or false.


Answer: TRUE

Business

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Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for

A. the city’s undue influence. B. the agent’s fraudulent misrepresentation. C. the buyer’s mistake. D. none of the choices.

Business

In 2014, a small publishing company sold 60,000 copies of Super Travel paperbacks (its only product) at $5 per book; total fixed costs were $15,000; and total variable costs were $3 per book. What is this company's breakeven point in units?

A) 10,500 units B) 7,500 units C) 30,000 units D) 15,000 units

Business

On behalf of Bay Oyster Company, Celia types her name at the bottom of an e-mail purchase order and submits the order to Deepwater Parts Company. Under the UETA, Celia's typed name qualifies as

A. her "signature." B. a cybernotary. C. a partnering agreement. D. nothing.

Business

The common objective of borrowing and lending is to ________

A) make all parties better off B) gain a profit at the other's expense C) make a firm or individual appear more liquid than is really the case D) thwart regulatory authority

Business