Principal – Agent Relationship

Question

Principal – Agent Relationship

Explain the following terms/concept:

Monjur Alahi

4 views

2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

1. This term is related to partnership firm of organizations.

2. In partnership firm all partners are the joint owners of the business and all takes part in the management of the business.

3. Hence, every partner acts in dual role in partnership firm i.e. (a) When within the firm they act as ‘Principal’ and (b) When they deal with outsiders they act as an ‘Agent’.