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What Are the Methods Used by Business Firms to Cope

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What are the methods used by business firms to cope with risk?


Definitions:

Undisclosed Principal

A situation in a contractual agreement where an agent acts on behalf of a principal, but the identity of the principal remains unknown to the third party.

Instructions

Directions or orders given for the purpose of guiding actions or procedures.

Agent

A person appointed to act for another, usually in contract matters.

Agency by Estoppel

A form of agency created when a principal's actions lead a third party to believe that an agent has authority, obliging the principal to honor the agent's commitments.

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