Determine whether the following statement is True or False. The principle-agent relationship exists when one party...
Determine whether the following statement is True or False.
The principle-agent relationship exists when one party (the principal) would like another party (the agent) to act in some way, or have some attribute that is in the interest of the principal, and that cannot be enforced or guaranteed in a binding contract.
Homework Answers
True
The principle agent relationship exists when principle authorizes the agent to act on his behalf and this contract is not binding due to incomplete information on the side of principle.
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