Spoken or Written Words the Principal Communicates to the Agent

question 11

Multiple Choice

Spoken or written words the principal communicates to the agent create:

• A) actual,express authority.
• B) actual,implied authority.
• C) apparent authority.
• D) incidental authority.

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Definitions:

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Subprime Mortgages

Loans granted to borrowers with lower credit scores and a higher risk of default than prime borrowers, usually at higher interest rates.

Credit Crisis

A financial situation characterized by a severe shortage of credit or loans, leading to widespread financial instability and economic downturn.

Junk Bonds

High-risk, high-yield bonds issued by companies with lower credit ratings than investment-grade bonds.