Which one of the following is not necessarily a characteristic of an agent–principal relationship?The agent's authority may be general, or it may be restricted in some way.The agent has a duty to fairly represent the principal and to act in the best interests of the principal.Any third party with whom the agent deals has the right to rely on the agent's authority and to hold the principal legally responsible for its dealings with the agent.The agent is an employee of the principal.

Who is liable to a third party if an agent exceeds his or her authority to act on behalf of the principal?Multiple choice question.Neither the agent nor the principalThe principalThe agentAny incidental beneficiary

Which amongst the following options is true, regarding apparent authority? Select one: a. The agent has acted beyond the scope of their actual authority, but the agent appears to have authority to act on behalf of the principal in the circumstances because of the conduct of the principal. b. The principal has given the authority to the agent, but the agent appears to have no authority to act on behalf of the principal. c. The principal will never be bound by the actions of an agent who has done the wrong thing by exceeding their actual authority. d. The principal is not bound by the actions of an agent done with apparent authority unless the principal ratifies the transaction.

The key feature of an agency relationship is thata company will allow another firm to take on its name, and act as an agent in doing business. one party passes the responsibility for making decisions to another party. the principal will always make decisions that are in the best interests of the agent. the decisions by the agent will always improve the position of the owners of a firm. the principal may not always make decisions that are in the best interests of the agent.

In Agency theory, the following are true except:" The principal delegates decision-making authority to an agent. Both parties are utility maximisers. The agent always acts in the interest of the principal. The agent has a legal and fiduciary duty to act in the best intrests of the principal.

A(n)          would be an example of a principal, while a(n)          would be an example of an agent.