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

Question

Quizplus · Accepted Answer

The statement mentions that agents have an incentive to make transactions happen, which may not always align with the principal's interests. This can create challenges in negotiations, as the agent may push for a deal that is not in the best interest of the principal. Option A is not the best choice, as the statement does not mention price reductions specifically. Option B is partially correct, but does not capture the full extent of the challenge mentioned in the statement. Option D is not mentioned in the statement at all.

Agents Have an Incentive to Make Transactions Happen and Are