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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Estrella

8 days 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

8 days 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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Bernardo

9 days ago

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

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Lashawnda

9 days ago

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

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Dannie

11 days 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

12 days 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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Garry

12 days 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

25 days ago

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

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