An Undisclosed Principal Will Be Bound by Any Contract the Agent

question 36

True/False

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

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Definitions:

LMX Differentiation

The degree to which leaders in the Leader-Member Exchange (LMX) theory develop different quality relationships with different subordinates.

Group Harmony

Refers to the state of cohesive and conflict-free relations within a group, often prioritized in collectivist cultures and organizations to ensure smooth interpersonal interactions and collective well-being.

Corrective Action

Measures taken to rectify a problem, error, or fault in order to prevent recurrence.

Leader-Follower Transactions

Interactions between leaders and followers where leadership is exercised based upon an exchange process, where compliance by the follower is rewarded by the leader.