Apparent Authority in an Agency Relationship Arises When the Principal

question 117

True/False

Apparent authority in an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act.

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Definitions:

Technological Improvements

Enhancements or upgrades in technological tools, systems, and procedures that increase efficiency or effectiveness.

Malthus

Refers to Thomas Malthus, an English economist and demographer known for his theory that population growth will outpace agricultural production, leading to widespread poverty.

Diminishing Marginal Returns

An economic principle stating that as more of a variable input is added to a fixed input, the additional output gained from each new unit of variable input will eventually decrease.

Marginal Product

The increase in output that results from using one more unit of a particular input, keeping other inputs constant.