Agents owe a fiduciary duty to the principal. Describe the specific responsibilities that are generated by this duty. Discuss fully
Students should fully discuss the duties of loyalty, obedience, and care. The duty of loyalty involves an agent's duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking. Under the duty of obedience, an agent is obligated to obey all reasonable orders of his or her principal. The duty of care includes a duty to avoid mistakes, whether through negligence, recklessness, or intentional misconduct.
You might also like to view...
Which of the following is not a characteristic of relevant costing information? It is
a. associated with the decision under consideration. b. significant to the decision maker. c. readily determined from financial records. d. related to a future endeavor.
McClelland's theory is based on which of the following needs?
A. Achievement, power, and affiliation B. Esteem, social, and security C. Physiological, social, and self-actualization D. Reward, power, and social
With reference to the United States Bankruptcy Code, which of the following is a disadvantage of bankruptcy to creditors?
A) Continued operation results in less funds to distribute at liquidation. B) The going-concern value of an insolvent business is not preserved. C) Creditor-in-possession is held accountable due to bankruptcy reporting and notice requirements. D) A creditor cannot file an involuntary petition for relief under Chapter 7.
The ________ strategy focuses on selling the firm's existing products to new groups of customers.
A. penetration B. diversification C. product development D. market development