An Agency Relationship

question 24

Multiple Choice

An agency relationship:

• A) exists only when it is in the form of a written document signed by both the parties.
• B) can be either compensated or uncompensated.
• C) will not exist if the parties have expressly agreed that they do not intend to create one.
• D) can be formed only by contract.

---

Definitions:

Relatively Cheap

A term used to describe goods or services that are considered to be priced lower than their perceived value or compared to alternative options.

Prospect Theory

A psychological theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

"Low Fat" Sour Cream

Sour cream that has been modified to contain a lower fat content than traditional sour cream.

Dairy Barn

A specific type of barn used primarily for housing dairy cows and equipment for the production of milk.