Which of the Following Is False Regarding an Agency Relationship

question 34

Multiple Choice

Which of the following is false regarding an agency relationship?

• A) The most common form of agency relationship is the employer-employee relationship.
• B) An agent may not be in independent contractor.
• C) An agency agreement may be implied.
• D) Agency may be established by estoppel.

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Definitions:

Postage Stamps

Adhesive paper evidence of prepayment for postal services, used to send letters and packages.

Cash Equivalent

Short-term, highly liquid investment assets that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Money Market

A segment of the financial market where short-term funds are borrowed and lent, typically involving instruments with high liquidity and short maturities.

Treasury Bill

A short-term government security issued at a discount from the face value and paying no interest, maturing usually in one year or less.