Tom works for a consulting agency. When he makes sales calls to inform prospective clients about the services his firm provides, it can be said that he is acting as a principal for his firm.

Question

Quizplus · Accepted Answer

In this context, Tom is acting as an agent for his firm, not a principal. The principal is the firm itself, while Tom, as an employee, represents the firm in dealings with clients.

Tom Works for a Consulting Agency