Using an agent provides benefits to a principal, but can also result in liability imposed on the principal.

Question

Quizplus · Accepted Answer

This statement is true. While working with an agent can provide benefits such as expertise, networks, and cost savings, the principal may also be held liable for the agent's actions, particularly if the agent is acting within the scope of their authority as granted by the principal. It is important for principals to carefully choose and monitor their agents, and to establish clear guidelines and limitations on their authority.

Using an Agent Provides Benefits to a Principal, but Can