The appointment of an agent is a common practice in business transactions. An agent is a person or entity appointed by another party to act on their behalf in a particular transaction or activity. In this context, the question asks who appoints the agent, and the correct answer is the Principal.

Explanation:

- Definition of a Principal: In business, a Principal is a person or entity who engages another person or entity to act on their behalf in a particular transaction or activity. The Principal is the party that gives authority to the agent to act on their behalf.
- Appointment of an Agent: When a Principal appoints an agent, they give them the authority to act on their behalf in a particular transaction or activity. The agent is expected to act in the best interest of the Principal and follow their instructions.
- Role of the Agent: The agent is responsible for carrying out specific tasks or activities on behalf of the Principal. They may negotiate deals, sign contracts, or make payments on behalf of the Principal. The agent is expected to act with reasonable care and skill in carrying out their duties.
- Importance of the Principal-Agent Relationship: The Principal-Agent relationship is essential in business transactions as it allows the Principal to delegate tasks and responsibilities to the agent while retaining control over the outcome. The agent's actions are considered to be the actions of the Principal, and they are held responsible for any misconduct or negligence on the agent's part.

Conclusion:

In conclusion, the appointment of an agent is a common practice in business transactions, and it is the Principal who appoints the agent. The Principal-Agent relationship is essential in business transactions, and it allows the Principal to delegate tasks and responsibilities to the agent while retaining control over the outcome.