Wayne Is an Agent for Sarah, a Professional Hockey Player

question 22

True/False

Wayne is an agent for Sarah, a professional hockey player.For two seasons, he has helped Sarah negotiate her contract with the Saskatoon Hilltops Hockey Team.He has never signed her contract.Sarah always signed her contract herself and she usually participates in the negotiations.This year, after a hard negotiating session that Sarah did not attend, he signed a contract on her behalf.The contract is binding because as an agent, Wayne has the absolute unconditional power to act on behalf of Sarah, his principal.

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Definitions:

Explicit Costs

Explicit costs refer to the direct, out-of-pocket payments made by businesses for the resources they use, such as wages, rent, and materials.

Uninsurable Risk

An eventuality for which the frequency or magnitude of potential losses is unpredictable or unknowable. Insurance companies are not willing to sell insurance against such risks.

Consumer Tastes

Preferences or likes and dislikes of consumers that influence their purchasing behavior and are affected by cultural, social, personal, and psychological factors.

Business Firm

An organization engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.