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Examples of agents are sales representatives and shipping agents. Another example is someone who enters into negotiations on behalf of a client.
The correct answer is B. Your roommate shirks her obligation to keep the apartment kitchen clean is an example of a principal-agent problem.
Examples of agents are sales representatives and shipping agents. Another example is someone who enters into negotiations on behalf of a client.
The principal-agent problem is a conflict in priorities between the owner of an asset and the person to whom control of the asset has been delegated. The problem can occur in many situations, from the relationship between a client and a lawyer to the relationship between stockholders and a CEO.
There are four main categories of agent, although you are unlikely to need the services of all of them: Artists agents. An artists agent handles the business side of an artists life. Sales agents. Distributors. Licensing agents.

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A principal appoints an agent to act on their behalf and in their best interest. Examples include an investor picking a fund manager or someone hiring an attorney for legal work. There should be no conflict of interest between the two, if there is, this creates a principal-agent problem.
Kinds of Agents Universal Agent : A Universal agent is one who is authorised to do all the acts which the Principal can lawfully do and can delegate. Special Agent: General Agent: De Credere Agent: Pakka Adatia And Kaccha Adatia. Broker : Factor : Commission Agent:
� Principal: The person or entity on whose behalf and subject to whose control an agent acts. �� For example, your boss at work. � Agent: A person who agrees to act on behalf of and instead of his or her principal, subject to the principals control. A good example would be an insurance agent.
The main reasons for the principal-agent problem are conflicts of interests between two parties and the asymmetric information between them (agents tend to possess more information than principals). The principal-agent problem generally results in agency costs that the principal should bear.
A principal-agent relationship describes the relationship between a business or individual and someone hired by that business or person to act on their behalf. The principal is the business entity (or hiring individual), while the agent is the entity hired to act on behalf of the principal.

Related links

Principal-Agent Relationship

Persons, corporations, partnerships, not-for-profit organizations, and government agencies may all be principals and appoint agents. Who can be an Agent? Any

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Principals, Agents, and the Intersection between Scientists

by KLE Murdock 2014 Cited by 4 Principalagent problems occur when two parties that are driven by competing self-interest negotiate the terms of a relationship or contract

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Principals, Agents, and the Intersection between Scientists

by KLE Murdock 2014 Cited by 4 Principalagent problems occur when two parties that are driven by competing self-interest negotiate the terms of a relationship or contract

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Principal-Agent Relationship

Persons, corporations, partnerships, not-for-profit organizations, and government agencies may all be principals and appoint agents. Who can be an Agent? Any

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Principal vs. Administrator - Difference Wiki

When an attorney represents a client, the client is the principal who permits the attorney, the clients agent, to act on the clients behalf.

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