It is often necessary or desirable for a person or firm to be represented by another in business or personal dealings with third parties. This relationship is called a(n):
A) employer-employee relationship.
B) principal-agency relationship.
C) title-agency relationship.
D) third party-agent relationship.

Question

Quizplus · Accepted Answer

The relationship described in the question is that of a principal (person or firm) who is represented by an agent in dealings with third parties. This is known as a principal-agency relationship. The other options do not accurately describe this type of relationship.

It Is Often Necessary or Desirable for a Person or Firm