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Principle of agency - SS2 Commerce Past Questions and Answers - page 1

1

What is the primary duty of an agent towards the principal?

 

A

Compensation 

B

Diligence

C

Control 

correct option: b

Diligence

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2

Which right of the agent allows them to expect reimbursement for necessary expenses?

 

A

Indemnification

B

Control 

C

Cooperation 

correct option: a

Indemnification

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3

What is the principal's right to direct the actions of the agent called?

 

A

Control

B

Diligence

C

Loyalty 

correct option: a

Control

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4

Which duty of the agent requires them to act in the best interests of the principal?

 

A

Control

B

Loyalty

C

Indemnification

correct option: b

Loyalty

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5

Which right of the principal ensures that the agent acts honestly and in good faith?

 

A

Control 

B

Compensatiom

C

Good Faith

 

correct option: c

Good Faith

 

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6

Name one right of the agent in the principal-agent relationship.

 

7

What is one duty of the principal towards the agent? 

 

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