Asked by Jennifer Osuna on Sep 24, 2024
Verified
In a situation where a car salesman is selling cars on behalf of the dealer,the dealer is the
A) Principal
B) Agent
C) Both of the above
D) None of the above
Car Salesman
A person who sells new or used cars at a dealership and is often involved in negotiating prices and financing terms with buyers.
Dealer
An individual or firm involved in the business of buying and selling securities for their own account or for others.
- Absorb the differentiation in the pursuits of principals and agents within their collaborative bond.
Verified Answer
KM
Katherine Montey3 days ago
Final Answer :
A
Explanation :
The dealer is the principal in this situation because they are the owner of the cars being sold and have hired the car salesman to act on their behalf. The car salesman is an employee or representative of the dealer, making them the agent. However, in this scenario, the dealer is the one ultimately responsible for the actions and decisions made by the car salesman during the car selling process.
Learning Objectives
- Absorb the differentiation in the pursuits of principals and agents within their collaborative bond.