Final answer:
The relationship where a principal allows a licensee to represent him is called an agency relationship.
Step-by-step explanation:
The relationship where a principal allows a licensee to represent him is called an agency relationship.
In an agency relationship, the principal gives the licensee the authority to act on his behalf, usually in a specified area or for a specific purpose. The licensee, also known as the agent, has the power to make decisions and enter into agreements on behalf of the principal.
This type of relationship is common in various fields, including business, law, and real estate. For example, when a lawyer represents a client, the client is the principal and the lawyer is the agent, authorized to act on the client's behalf within the scope of their legal representation.