Which of the following types of agency relationships serves as the foundation for the other types of agency relationships?

Question

Quizplus · Accepted Answer

The principal-agent relationship serves as the foundation for the other types of agency relationships because it involves the principal (the person giving authority to the agent) relying on the agent to act on their behalf and in their best interests. The other types of agency relationships, such as employer-employee and employer-independent contractor, are examples of principal-agent relationships with specific roles and responsibilities defined within them. Dual agency is a type of agency relationship where one agent represents both the buyer and seller in a transaction, but it is not a foundational type of agency relationship.

Which of the Following Types of Agency Relationships Serves as the Foundation