Question

In: Operations Management

What are two ways in which the authority of an agent can be increased or expanded?

What are two ways in which the authority of an agent can be increased or expanded?

Solutions

Expert Solution

Two ways in which the authority of an agent can be increased or expanded are:

(1): The principal explicitly grants more authority to the agent. In this method the principal expands the scope of work and duty of the agent and increases the precise powers that the agent will have to perform those duties and fulfil the tasks given to the agent.

(2): The principal increases the scope of express authority for the agent or when the principal makes a representation to third parties in which the agent is said to have an increased level of authority to act as the agent of the principal even when the principal does not actually appoint that person as his agent. In such a case the principal is increasing the agent’s apparent authority.


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