A great majority of social and economic relationships are of the principle agent type. The principle-agent problem is a game-theoretic situation where; there is a player (the principal) and one more other players (the agents). This is the problem of how the principle can motivate the agent to act for the principles benefit rather than follow self interest. “The problem is how to devise incentives which lead to report truthfully to the principle on the facts they face and the actions they take
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FBI agents go under rigirous training to become an agent. It takes a lot of skill and have plenty of physical training. Theres a lot of experience and education you need to become and FBI agent. There are also many requirements you need to pass like you need to be between the ages of 23 and 37 and you need to be a U.S. citizen. You need to have 20/20 vision in at least one eye. You need to have a bachelors degree in a really good college. You need to major in law‚ accounting‚ science‚ or language
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elaborate upon the duties that a principal owes to an agent. Answer: An agency is the creation of a contract entered into by mutual consent between a principal and an agent. By agency‚ a principal grants authority to an agent to act on behalf of and under the control of the principal. A principal owes certain contractual duties to his/her agent by an agent will serve the principal loyally and with obedient. The principal duties can be found in section 172
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Real Estate Agents have to be good at timing. It is all made up from a daily schedule that they must follow to get the appointments finished. This occupation requires a hard working‚ steady‚ and patient person. A real estate agent does a little of everything in the business. They have the responsibility to be a salesperson at one moment‚ a buyer’s advocate the next; an observer‚ a consultant‚ an auctioneer‚ a negotiator‚ and a marketer. A lot of the time they
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gallons of the defoliant Agent Orange were used to rid the land of the thick trees populating these forests. After the war‚ it was discovered that Agent Orange caused life-threatening illnesses in the soldiers who handled it‚ and the Vietnamese who lived in the affected jungles. Agent Orange is a defoliant‚ a chemical which is specifically designed to kill plants. This
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Principal –agent conflict arise because managers & shareholders view the role of the corporation differently. Investors see corporation as investment vehicles. Shareholders want corporate managers to work diligently and efficiently towards the simple goal of maximizing the value of their ownership stake. However‚ the relationship between the managers of a corporation and its owners is complex. The principle of self-interested behavior tells that people‚ including managers and stockholders‚ work
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To appear in: Moutinho and Hutcheson: Dictionary of Quantitative Methods in Management. Sage Publications Principal Components Analysis Introduction Principal Components Analysis (PCA) attempts to analyse the structure in a data set in order to define uncorrelated components that capture the variation in the data. The identification of components is often desirable as it is usually easier to consider a relatively small number of unrelated components which have been derived from the data than
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between the seller / the principal and the representative / the agent is governed by the Law of Agency. A fiduciary relationship created under the law of agency in which one person has a legal authority to act for another‚ can arise from1. 1. An oral or written expressed agreement‚ whereas agent is appointed by the principal for a particular task‚ 2. Ratification of an agent’s conduct that the principle didn’t authorise‚ 3. Implied agreement created by assumed agent authority to enter into
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Freight Forwarders can act as either a Principal or Agent. Describe in your own words the differences between each. Under what circumstances might a Freight Forwarder want to act as either a Principal or Agent? When Freight Forwarders act as principal‚ they assume all responsibility and liability for the pick-up‚ handling‚ transporting and delivery of the shipment as a regular common carrier would. Their name is on the BOL. When a Freight Forwarder acts as an agent‚ their liability ends once they
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Cynthia Claude Nkono Moanang 1009040 CORPORATE GOVERNANCE AND BUSINESS ETHICS ASSIGNMENT TOPIC: Principals (shareholders) – agent (managers) problem represents the conflict of interest between management and owners. For example‚ if shareholders cannot effectively monitor the managers’ behaviour‚ then managers may be tempted to use the firm’s assets for their own ends‚ all at the expenses of shareholders. Discuss the pros and cons of this statement with regard to duties of Board of Directors
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