Which of the Following Is True About Agency Relationships in the European

question 55

Multiple Choice

Which of the following is true about agency relationships in the European Union?

• A) Agents must disclose whom they are representing to third parties.
• B) Third parties require proof that agents are acting on behalf of a particular principal.
• C) Agents must have expressed authority to act.
• D) Principals are bound to act in good faith toward their agents.

---

Definitions:

Desirable

An attribute or quality that makes something preferred or pleasing to individuals or groups.

Optimal Solutions

The most favorable or desirable solutions among all feasible solutions in a problem-solving or decision-making process.

Ethical Dilemmas

Situations in which a person faces conflicting moral principles, making it challenging to decide the right course of action.

Stakeholders

The groups of people affected by a firm’s decisions.