Management and Organizational Studies 2275A/B Lecture Notes - Lecture 6: Apparent Authority, Paper Towel, Sports Agent

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

The textbook takes the view that the agency relationship is a fundamental and critical aspect of business and as such devotes a full chapter to its treatment. Placement at the beginning of the unit on business associations helps inform and facilitate the discussion of partnership and corporation law, which follows in chapters 14, 15, and 16. Specifically, the chapter attempts to show that it would be virtually impossible to conduct business on any significant scale without the legal recognition of agency. The chapter begins with an examination of the prevalence of the relationship within business organizations (i. e. , between the organization and its employees) and between business organizations and outsiders. The agency relationship is not, however, without risks. The chapter illustrates the risks inherent in agency and how these risks can be managed. Understand the agency relationship and its relevance to business. Understand how an agency relationship comes into being.