please answer in details within 30 minutes as to why the option is right and why other options are wrong. In the Principal Agency relationships, which is not an agency (owner-managers) problem discussed in the text?Select one:O a.Excessive on the job consumptionO b. Special benefits for customersO c. Low-risk, short-term investmentsO d. Empire building behavior

Answered: In the Principal Agency relationships,…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Related questions

Question

please answer in details within 30 minutes as to why the option is right and why other options are wrong.

In the Principal Agency relationships, which is not an agency (owner-managers) problem discussed in the text?
Select one:
O a.
Excessive on the job consumption
O b. Special benefits for customers
O c. Low-risk, short-term investments
O d. Empire building behavior

Expert Solution

Step 1

In a principal-agent relationship, one entity formally designates another to act on its behalf.
When there is a principle-agent relationship, the agent represents the principal and shouldn't have any competing interests when performing the act. The law of agency defines rules for a connection known as "agency," which is the relationship between the principle and the agent.