Which of the Following Is True of an Apparent Agency

question 8

Multiple Choice

Which of the following is true of an apparent agency?

• A)The authority of an apparent agent is implied from the conduct of the parties.
• B)The third-party is not bound to a contracted created by an apparent agent.
• C)The principal is bound to the contracts entered into by an apparent agent.
• D)The actions of an apparent agent create an apparent agency.

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Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, often factored into more complex calculations to understand financial health.

Tax Deductibility

The ability to reduce taxable income through certain expenses or deductions, thus lowering the overall tax liability.

Embedded Debt Cost

The implicit interest cost contained within a leasing agreement, reflecting the leasing company's financing charges.

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for risk.