Future Business Leaders of America (FBLA) Business Law Practice Exam

What type of agent has the authority to perform any act within the scope of a business?

1. Special agent

2. General agent

3. Sub-agent

4. Limited agent

The correct answer is: General agent

The type of agent that has the authority to perform any act within the scope of a business is a general agent. This agent is typically entrusted with a broad range of responsibilities and has the ability to make decisions and take actions on behalf of the principal in managing their business operations. General agents operate with a high level of authority, often handling day-to-day operations and making decisions that align with the principal's overarching business goals and strategies. This level of authority distinguishes general agents from others, such as special agents, who are limited to specific tasks or functions, or limited agents, who have restrictions on their authority. In the context of business law, recognizing the roles and responsibilities assigned to general agents is essential for understanding the dynamics of agency relationships and the legal implications for both the agent and the principal.