Apparent authority is established by:

Apparent authority refers to a situation where a third party reasonably believes that a person has the authority to act on behalf of another (the principal) based on the principal’s conduct or representations. This concept is rooted in the actions or communications that create the perception of authority, even if no formal, documented authority exists.

When a principal's actions or words suggest that an individual is authorized to act on their behalf, this can lead a third party to assume that the individual indeed has such authority. For example, if a company allows an employee to consistently negotiate contracts and deal with clients, a third party might reasonably believe that the employee has the authority to make binding decisions for the company.

Formal announcements or internal company policies may play a role in establishing apparent authority, but they are not sufficient on their own. The crux of apparent authority hinges on the interactions and communications experienced by third parties, which create that perception of authority. Thus, option B accurately captures the essence of how apparent authority is created and understood in a business context.