An Agent Is Not Required to Keep Which of the Following

question 61

Multiple Choice

An agent is not required to keep which of the following information confidential?

• A) Unique business methods
• B) Customer lists
• C) Information that his or her principal is engaged in criminal activity
• D) Business plans

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Definitions:

Retained Earnings

Retained earnings represent the cumulative amount of net income retained in the company rather than distributed to shareholders as dividends.

Dividends Payable

A financial accounting term referring to the declared dividends to be paid to a corporation's shareholders out of current or retained earnings.

Legal Capital Approach

A method of accounting that maintains capital at a certain legal minimum to protect creditors.