Which Organization Has the Highest Market Dependence

question 56

Multiple Choice

Which organization has the highest market dependence?

• A) a chain of rapid-service oil change shops
• B) a manufacturer of chemicals for the international pharmaceutical industry
• C) a regional department store having 26 locations in the Northwest
• D) a company that specializes in making replacement tiles for the space shuttle

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Definitions:

Agency Agreement

A contract where one party (the agent) agrees to represent or act for another party (the principal) in business dealings with third parties.

Writing Requirement

A legal principle that certain kinds of contracts or agreements must be memorialized in a signed writing to be enforceable.

Apparent Agency

A situation where a principal appears to the public to have granted authority to an agent, even if no actual authority was granted.

Expressed Agency

A legal relationship where an agent has the explicit authorization by the principal to act on their behalf.