A large and well-known corporation wants to acquire a plot of ground for a new plant. To avoid the extra cost, the corporation purchases the land through several agents, each purporting to be buying personally. In such cases, the corporation is a(n) _____.
A) undisclosed principal
B) disclosed principal
C) partially disclosed principal
D) subagent

Question

Quizplus · Accepted Answer

Sometimes principals do not want their identities known to those who deal with their agents. A common example is when a large and well-known corporation wants to acquire a plot of ground, perhaps for a new plant. One reason such a principal remains undisclosed is because the third party might demand a larger payment for the goods or services if it knew who the principal was.

A Large and Well-Known Corporation Wants to Acquire a Plot