What defines a general agency relationship?

A general agency relationship is characterized by the agent being granted broad power to act on behalf of the principal across a wide range of business activities. This type of agency allows the agent to make decisions and perform tasks that are in the best interest of the principal, encompassing various operational aspects. The key feature of a general agency is the extensive scope of authority provided to the agent, which can include tasks like negotiating contracts, managing properties, and representing the principal in multiple transactions.

In contrast, other options represent different agency structures or levels of authority. A narrow authority typically refers to a special agency relationship, where the agent has limited power to perform specific tasks. Full authority over financial aspects indicates a more focused role, likely aligning more with a fiduciary relationship rather than a general agency. The ability to make decisions independently without consultation denotes more of a power of attorney situation, which doesn't necessarily reflect the collaborative nature of a general agency relationship. Therefore, the choice that highlights the broad power in all business dealings accurately captures the essence of a general agency relationship.