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

Which of the following statements most accurately describes the role of an agent as defined in principal-agent theory?
D) One who is responsible for ensuring the organization pursues the interests of its owners
A) An employee of the organization
B) An owner of the organization
C) One who is paid by the owners of the organization

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?

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Suggested Answer: D

by Avery at May 01, 2026, 05:28 PM

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Skye
10 hours ago
I think D is the best choice.
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Twila
6 days ago
Same here! D covers the owner's interests well.
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Tamie
11 days ago
I feel confident about D. It just makes sense!
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Theresia
16 days ago
D definitely aligns with principal-agent theory.
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Hailey
21 days ago
I chose C because it highlights payment, but D is stronger.
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Sheridan
26 days ago
Agreed! D shows the responsibility aspect clearly.
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Vonda
1 month ago
I was torn between C and D, but D feels more complete.
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Reita
1 month ago
Yeah, it really captures the essence of the agent's role.
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Cordie
1 month ago
I think D is the best answer.
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Scot
2 months ago
Definitely D, they need to align with owner interests!
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Kassandra
2 months ago
I thought owners could also be agents?
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Thaddeus
2 months ago
Wait, isn't an agent just an employee?
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Jerry
2 months ago
Totally agree, D makes sense too!
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Chuck
2 months ago
C is correct, agents are paid by owners.
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Ora
2 months ago
I recall discussing how agents are typically employees, but I think the key part is their responsibility to the owners, so D might be the best choice.
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Mable
4 months 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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Dorothea
4 months 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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James
4 months 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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