Which one of the following statements is TRUE?
A) An agency relationship is when someone hires someone else to perform a service and gives them decision-making authority.
B) An agency relationship is when an agent hires a principal to perform a service.
C) An agency relationship is when a principal works for an agent.
D) In an agency relationship, the agent delegates authority to the principal.
E) An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.

Question

Quizplus · Accepted Answer

An agency relationship is when someone (the principal) hires someone else (the agent) to perform a service and gives them decision-making authority. This can include a wide range of relationships, from an employer/employee relationship to a real estate agent/buyer relationship. The agent acts on behalf of the principal and is expected to act in the principal's best interest.

Which One of the Following Statements Is TRUE