A(n) ________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

Question

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A principal-agent relationship is formed when an employer (the principal) hires an employee (the agent) and gives them the authority to act and enter into contracts on their behalf. This relationship involves the agent acting on behalf of the principal, with the principal assuming responsibility for any actions the agent takes within the scope of their employment. This type of relationship is commonly found in business and employment settings.

A(n) ________ Is a Relationship Formed When an Employer Hires