In an agency relationship, the party that delegates decision-making authority to another individual is known as the
A) stakeholder.
B) principal.
C) agent.
D) stockholder.

Question

Quizplus · Accepted Answer

The term "principal" is commonly used to refer to the party in an agency relationship that delegates decision-making authority to another individual, known as the agent. The principal is typically the party that hires the agent to act on their behalf in some capacity, such as in a business or legal context. The agent is responsible for carrying out the principal's instructions and making decisions on their behalf, while the principal retains ultimate authority and control over the relationship.

In an Agency Relationship, the Party That Delegates Decision-Making Authority