A Person Represented by an Agent Is Known as the Principal

question 35

True/False

A person represented by an agent is known as the principal.

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Definitions:

Firm Indifferent

A state where a business has no preference between two or more choices due to equivalence in outcomes.

Agent's Incentives

The rewards, financial or otherwise, that motivate an agent, such as an employee or representative, to act in the principal's (such as an employer or company) best interests.

Buying Securities

The act of purchasing financial instruments such as stocks, bonds, and mutual funds with the intention of generating returns.

Offer

A proposal by one party to enter into a contract with another party, specifying the terms by which they are willing to engage in a transaction.