Which of the Following Is Correct with Respect to the Agency

question 190

Multiple Choice

Which of the following is correct with respect to the agency relationship?

• A) Agents are those who act on behalf of others but are not employees.
• B) The agency relationship must be created by contract.
• C) No agency can be created without the consent of the principal.
• D) For an agency contract to be valid, it must be in writing.
• E) An agency agreement in writing and under seal is called a power of attorney.

---

Definitions:

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.

Buyer

An individual or entity that purchases goods or services for personal use or for the purpose of resale.