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Agents Have an Incentive to Make Transactions Happen and Are

Question 12

Multiple Choice

Agents have an incentive to make transactions happen and are motivated to apply pressure to whomever is motivated to reach a deal.Therefore a key challenge of working with agents is that:


A) the agent has limited authority to offer price reductions
B) the emotional detachment and tactical flexibility provided by an agent may make it hard for the counterparty to infer the principal's interests
C) an agent's incentives are not perfectly aligned with the principal's
D) the agent doesn't act as a face-saving buffer for the principal

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