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During a severe thunderstorm, Christopher was talking on the phone with his girlfriend when lightning struck the house and the electrical shock traveled through the telephone wire. Christopher received a strong shock and the fright of his life. Although he wasn't severely injured, he developed an intense fear of lightning and thunderstorms. However, Christopher did NOT develop a fear of telephones or his girlfriend. Which concept helps explain this fact?
Incorporated
A legal process whereby a business entity is formed as a distinct legal entity, separate from its owners, with its own rights and liabilities.
Principal
The main party to a transaction or contract who has a primary interest and authority in the context considered.
Agency Responsibilities
Duties and powers entrusted to an agent or agency acting on behalf of another person or entity, known as the principal.
Constructive Dismissal
A situation where an employee resigns due to the employer's conduct creating an intolerable work environment, effectively being forced out.
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