A Principal Is Bound by Contracts That an Agent Enters

question 40

Essay

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.

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Definitions:

Centralization

The concentration of decision-making authority at the top levels of an organization or system.

Division of Labor

The assignment of different tasks to different people or groups in an effort to improve efficiency and productivity.

Team-Based Organizations

Organizations structured around teams rather than traditional hierarchical lines, emphasizing teamwork and collective goals.

Complex Environments

Complex environments are characterized by multiple, dynamic factors and variables that interact in unpredictable ways, making navigation and decision-making challenging.