Types of Businesses

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What is Agency? Agency can be described as the fiduciary relationship involving two parties in business with one being under the control or obligation of another. In this case, the relationship involves an agent who is obligated to or under the control of the other party i.e. the principle. An agency is usually created when a principal requests a person to make delivery as an agent through the establishment of a contract. In most cases, this kind of partnership between a principal and agency is usually imposed through agreements reached by the power of attorney. Types of Agents: These types of agents include general agents, special agents, co-agents, and universal agents (Smith & Osborne, par, 2). The other types of agents are servants, independent contractors, sub-agents or sub-servants, and sub-contractors. The general agents have a slightly limited scope but the capability of making some independent decisions while universal agents have wide scope and ability to make all decisions on behalf of principals. On the contrary, special agents are only used in special situations and make decisions in certain circumstances. Types of Principals: Similarly, there are different types of principals in this partnership i.e. disclosed principal, partially disclosed principal, and undisclosed principal. The disclosed principal is one whose identity and existence are known while partially disclosed principal is one whose existence is known but identity unknown. On the contrary,
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