Which of the following best describes the role of an agent in an agency relationship?

The role of an agent in an agency relationship is fundamentally centered on representing the interests of the principal. This means that the agent is entrusted with the responsibility to act on behalf of the principal, making decisions and taking actions that align with the principal's best interests. The agency relationship is built on trust, where the agent is expected to prioritize the goals and needs of the principal over their own.

In a business context, this relationship can be seen in various scenarios, such as when a manager (the agent) runs a company for its shareholders (the principals). The agent's duty involves fulfilling the objectives set forth by the principal, ensuring that decisions made align with what is most beneficial for the principal's goals.

The other options do not accurately reflect this fundamental responsibility. Acting primarily in their own interest contradicts the essence of the agency relationship, which relies on the agent prioritizing the principal's interests. While maximizing shareholder wealth may be a consideration for an agent in a corporate context, it is not a defining role of the agent itself. Similarly, ensuring company profitability, while a potential outcome of good agency behavior, does not encompass the core duty of the agent in serving the principal's interests.