Which of the following is an example of a principal-agent relationship?
A)Car dealer and potential customer
B)Business consultant and client
C)Retail store manager and potential customer
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

A principal-agent relationship is characterized by one party (the principal) empowering another party (the agent) to act on its behalf, typically in a contractual setting. In this context, the business consultant and client relationship is evidence of a principal-agent relationship. The consultant (agent) is empowered by the client (principal) to act on its behalf in advising and guiding its business decisions. The other options do not involve a clear principal-agent relationship as the parties involved are not clearly defined in terms of their roles or contractual obligations.

Which of the Following Is an Example of a Principal-Agent