Final answer:
The statement is false as a special agent is only authorized to perform specific tasks or transactions, not all the business of the principal. A general agent, on the other hand, has the authority to handle all the principal's business.
Step-by-step explanation:
The statement in question is false. A special agent does not have the authority to transact all the business of the principal. Instead, a special agent is typically authorized to perform a specific task or to represent the principal in a particular transaction or series of transactions. An agent with the authority to transact all the principal's business is typically referred to as a general agent.
How agents work can be illustrated in various fields, including the entertainment industry. For example, Alaine Alldaffer might be an agent who represents actors. This agent would then pitch the actor to a casting director for specific roles, showcasing the specialization aspect as opposed to handling all aspects of the actor's career, which would be the job of a general agent or manager.