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Public Administration Short Question | Gkseries

Q.

Which one of the following is not correct regarding principal-agent relationships ?

[A] Modern democratic state is based on principal-agent relationship
[B] Principal-agent relationships can be reduced to contractual terms
[C] The relationships are in between ‘population’ and its ‘rulers’
[D] The ‘rulers’ cannot be the ‘principal’ for the staff engaged for delivering contract
Answer & Explanation

Answer: The ‘rulers’ cannot be the ‘principal’ for the staff engaged for delivering contract

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