Which of the Following Statements About Agents and Principals Is

question 9

Multiple Choice

Which of the following statements about agents and principals is not true?

• A)Agreements between agents and principals must be in writing.
• B)Agents usually have no further legal involvement once a contract is made.
• C)The main role of an agent is to arrange and enter a contract on behalf of their principal with a third party.
• D)Principals are legally bound by the authorised conduct of their agents.

---

Definitions:

Absolute Advantage

The ability to make something using fewer resources than other producers use.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient production and trade.

Absolute Advantage

The capability of a country, individual, or company to produce a greater quantity of a good or service with the same amount of resources as another entity.

Pens

Writing instruments used for applying ink to a surface, typically paper, for writing or drawing.