Ballast takes many forms. The simplest form of ballast used in small day sailers is so-called live ballast, or the weight of the crew. By sitting on the windward side of the hull, the heeling moment must lift the weight of the crew.
The Principal-Agent Relationship. A principal-agent relationship is an arrangement between two or more individuals. Specifically, the agent of the relationship performs a task on behalf of the principal. This is often due to different degrees of knowledge and skills.
If you are a small-business owner and have to hire the services of a contractor or an outside expert, you enter a principal-agent relationship. Trust is the main element of this relationship. Specifically, you trust that you and a contractor have the same set of incentives.