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Q1-You are on the board of directors of a nonprofit art museum supported bydonations from wealthy members of the community, and are responsible foracquiring new works and staging exhibitions for the public. You are clearly anagent, but who is (are) the principal(s)?

Q2- Why might a parent company like McDonalds or Hilton choose to franchise itslocal outlets rather than own them and staff them with employees? In manysmaller cities all McDonald's outlets are owned by the same franchisee. Why is (orisn't) this fact consistent with our discussion of specific investments?

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