Not All ________ Are ________ Because They Cannot Enter into Contracts

question 63

Multiple Choice

Not all ________ are ________ because they cannot enter into contracts on behalf of the principal unless the principal authorizes them to do so. Examples include building contractors, doctors, stockbrokers, and lawyers.

• A) Agents; employees
• B) Independent contractors; employees
• C) Independent contractors; agents
• D) Agents; independent contractors
• E) Employees; independent contractors

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Definitions:

Product Differentiation

The strategy of distinguishing a product from others in the market by emphasizing its unique features, benefits, and attributes.

Size Distribution

Refers to the variation in size among entities in a population, such as companies within an industry or incomes among individuals.

Market Power

The ability of a company or entity to influence the price or terms of products in the market to its advantage, often because of its size or market share.

Contestable Markets

Markets where entry and exit are costless or very low, making the market susceptible to potential competition.