CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 79 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 79
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which of the following statements most accurately describes the role of an agent as defined in principal-agent theory?

AAn employee of the organization

BAn owner of the organization

COne who is paid by the owners of the organization

DOne who is responsible for ensuring the organization pursues the interests of its owners

Show Suggested Answer

Suggested Answer: D

by Gregoria at Dec 25, 2023, 01:49 PM

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Gearldine

1 months ago

Haha, I guess the agent is not the owner, so option B is just silly. I'm going with D for the win!

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Jonell

12 days ago

Definitely, the agent is responsible for representing the owners' interests. D is the right answer.

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Giovanna

16 days ago

Yeah, the agent is supposed to act in the best interest of the owners, so D makes sense.

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Stevie

19 days ago

I agree, option B doesn't make sense. I think D is the correct choice.

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Dorethea

2 months ago

D definitely seems like the best choice here. The agent is the link between the owners and the organization's operations.

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Maryann

2 days ago

Exactly, the agent is like a representative for the owners in the organization.

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Thaddeus

3 days ago

I agree, D is the correct choice. The agent acts on behalf of the owners to ensure their interests are met.

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Eden

5 days ago

D) One who is responsible for ensuring the organization pursues the interests of its owners

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Carlee

6 days ago

C) One who is paid by the owners of the organization

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Wilson

12 days ago

B) An owner of the organization

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Annice

1 months ago

A) An employee of the organization

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Estrella

2 months ago

I'm not sure about that. I think an agent is just an employee of the organization, so I would go with option A.

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Maurine

2 months ago

I was a bit confused between options C and D, but I believe D is the more accurate description of the agent's role.

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Carlee

1 months ago

Definitely, the agent's role is to work in the best interest of the owners and make decisions accordingly.

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Crissy

2 months ago

That makes sense, the agent is like a representative for the owners in the organization.

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Cornell

2 months ago

I agree, the agent acts on behalf of the owners to make decisions that benefit them.

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Julio

2 months ago

I think option D is correct, the agent is responsible for ensuring the organization pursues the interests of its owners.

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Bernardo

2 months ago

I agree with you, Lashawnda. That's why I would choose option D.

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Lashawnda

2 months ago

I think the role of an agent is to ensure the organization pursues the interests of its owners.

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Dannie

2 months ago

I'm not sure, but I think D) One who is responsible for ensuring the organization pursues the interests of its owners makes sense too.

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Mary

2 months ago

I think option D is the correct answer. The agent is responsible for ensuring the organization's interests align with those of the owners.

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Raul

28 days ago

I think so too. It's important for the agent to act in the best interest of the owners.

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Celia

1 months ago

I agree, option D makes the most sense. The agent should prioritize the owners' interests.

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Marge

1 months ago

Yes, I think option D is the most accurate description of the role of an agent in principal-agent theory.

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Raul

2 months ago

I agree, option D makes the most sense. The agent should prioritize the owners' interests.

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Garry

2 months ago

I agree with Lucy. The agent is supposed to act in the best interest of the owners who hired them.

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Lucy

3 months ago

I think the answer is C) One who is paid by the owners of the organization.

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