In the relationship between the owner of a bakery and the baker, the owner is
A)an agent, as is the baker.
B)an agent and the baker is a principal.
C)a principal and the baker is an agent.
D)a principal, as is the baker.
E)neither a principal nor an agent, but the baker is an agent.

Question

Quizplus · Accepted Answer

In this relationship, the owner of the bakery is considered the principal as they own the business and make the decisions. The baker, on the other hand, is considered an agent as they are working for the owner and carrying out tasks on their behalf. Therefore, the correct choice is C - the owner is a principal and the baker is an agent.

In the Relationship Between the Owner of a Bakery and the Baker