- 1 Marks
Question
Which of the following provides a good example of an agency relationship in a typical business organization?
A. Employees and Employer
B. Employees and Creditors
C. Creditors and Shareholders
D. Creditors and Governments
E. Debtors and Creditors
Answer
A. Employees and Employer
Explanation: An agency relationship arises when one party (the agent) acts on behalf of another party (the principal). In a business context, employees act as agents for the employer (the principal).
- Tags: Agency Relationship, Business Governance, Employer-Employee
- Level: Level 1
- Uploader: Dotse