- Principal-agent relationship
- A situation that can be modeled as one person, an agent, who acts on the behalf of another person, the principal. The New York Times Financial Glossary
Financial and business terms. 2012.
Principal-agent relationship
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Principal-Agent Relationship — An arrangement in which one entity legally appoints another to act on its behalf. In a principal agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act. The relationship… … Investment dictionary
principal-agent relationship — Occurs when one person, an agent, acts on the behalf of another person, the principal. Bloomberg Financial Dictionary … Financial and business terms
Principal-agent problem — In political science and economics, the principal agent problem or agency dilemma treats the difficulties that arise under conditions of incomplete and asymmetric information when a principal hires an agent. Various mechanisms may be used to try… … Wikipedia
agent — n 1: someone or something that acts or exerts power: a moving force in achieving some result 2: a person guided or instigated by another in some action where the heads of departments are the political...agent s of the executive, merely to execute … Law dictionary
principal — in the case of a loan, refers to the actual amount borrowed and on which interest is paid. Glossary of Business Terms The remaining balance owed on a loan by a borrower or on a security by its issuer, exclusive of any accrued interest. American… … Financial and business terms
Principal — (1) The total amount of money being borrowed or lent. (2) The party affected by agent decisions in a principal agent relationship. The New York Times Financial Glossary * * * ▪ I. principal prin‧ci‧pal 1 [ˈprɪnspl] noun 1. [singular] FINANCE… … Financial and business terms
Agent — The decision maker in a principal agent relationship. The New York Times Financial Glossary * * * agent a‧gent [ˈeɪdʒnt] noun [countable] 1. COMMERCE JOBS a person or company that is paid by another person or company to represent them in… … Financial and business terms
Agent (law) — For other uses of the word Agent, see Agent (disambiguation). This is correctAn Agent in Commercial Law is a person who is authorised to act on behalf of another (called the Principal) to create a legal relationship with a Third Party. Section… … Wikipedia
Principal (commercial law) — In commercial law, a principal is a person ndash;legal or natural ndash;who authorizes an agent to act to create one or more legal relationships with a third party. This branch of law is called agency and relies on the common law proposition qui… … Wikipedia
principal — prin·ci·pal 1 / prin sə pəl/ adj 1: being the main or most important, consequential, or influential their principal place of business the principal obligor 2: of, relating to, or constituting principal or a principal the principal amount of the… … Law dictionary
