Question
Michelle is an estate agent. She hears from her friend Jonathan that Sarah wants to sell her house. Michelle promises that if she sells Sarah's
Michelle is an estate agent. She hears from her friend Jonathan that Sarah wants to sell her house. Michelle promises that if she sells Sarah's house and receives her payment, she will pay Jonathan R2 000. She phones Sarah and speaks to her assistant Thabo. Thabo is an employee of Sarah's and manages all her properties. Michelle offers her services in selling the house at the best possible price. All she wants for her troubles is R20 000. Who in this specific example is the principal?Who in this specific example would not have acted in the best interest of the principal according to the agency problem?
A.Michelle would not have acted in the best interest of Sarah.
B.Jonathan would not have acted in the best interest of Thabo.
C.Sarah would not have acted in the best interest of Michelle.
D.Thabo would not have acted in the best interest of Sarah
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
