BUSI 2601 Lecture Notes - Lecture 6: Double Taxation, Initial Public Offering, Canada Revenue Agency
11 Dec 2016
School
Department
Course
Professor
Document Summary
B usi n ess st r uc t ur i n g. When one business or individual retains another to represent it, the principal has retained an agent. The age(cid:374)t does (cid:449)o(cid:396)k o(cid:374) the p(cid:396)i(cid:374)(cid:272)ipal"s (cid:271)ehalf and is authorized to represent the principal. Common examples: p(cid:396)ofessio(cid:374)al athlete"s spo(cid:396)ts age(cid:374)t, an insurance agent sells insurance on behalf of several insurance companies, a booking agent negotiates on behalf of entertainers, a stockbroker buys and sells shares on behalf of another. At the heart of the agency relationship is how much authority has been granted by the principal to the agent. An agency relationship is usually created by a contract. Agency contracts are also used when the agent is not an employee but a consultant. The by-laws of a corporation may give directors or key employees the authority to sign contracts as agents of the corporation. Sometimes an agency relationship is implied from conduct and not express.
