A(n) ____ relationship is one in which an agent acts on behalf of or for the principal, with a degree of personal discretion.

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The principal-agent relationship is characterized by the principal hiring an agent to act on their behalf, with a certain level of freedom to make decisions in pursuit of the principal's interests. While master-servant and employer-employee relationships also entail one party acting on behalf of another, they involve greater levels of control and direction from the principal or employer. Employer-independent contractor relationships involve a contractor providing services to the employer, but with less personal discretion than is typically involved in a principal-agent relationship.

A(n) ____ Relationship Is One in Which an Agent Acts