Which of the Following Constitutes an Agency

question 56

Multiple Choice

Which of the following constitutes an agency?

• A) principal-agent relationship
• B) agent-agent relationship
• C) principal-principal relationship
• D) agent-independent contractor relationship

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Definitions:

Operating Activities

Business activities related to the day-to-day functions of producing goods, providing services, and selling products.

Paying Taxes

The mandatory financial charge or other levy imposed on an individual or a legal entity by a governmental organization in order to fund government spending and various public expenses.

Cash Outflow

The movement of money out of a business, resulting from expenses or investments.

Accounts Receivable

Outstanding amounts due from clients to a company for products sold or services utilized, awaiting payment.