CIMAPRA17-BA1-1 Exam - Topic 1 Question 125 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 125
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 Avery at May 01, 2026, 05:28 PM

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17 days ago

I feel like option C could also be correct since agents are often compensated by the owners, but I’m not entirely confident.

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22 days ago

I remember a practice question that emphasized the agent's responsibility to the principal, which makes me lean towards option D.

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27 days ago

I think the agent is someone who acts on behalf of the owners, but I'm not sure if that means they have to be paid by them.

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