Question

In the principal-agent relationship, the agent is:__________.

A) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
B) the owner of a resource that has hired another party to act on his behalf.
C) 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.
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.

Answer 1

Answer: A) 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.

Step-by-step explanation:

Principal-agent relationship is

• a legal arrangement in which one party appoints another party to act on its behalf.
• The agent acts on behalf of the principal and have to follow all the instruction provided by the principal.

So, In the principal-agent relationship, the agent is the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.

Hence, the correct option is (A).