Why Would an Agent Not Disclose the Existence and Identity

question 45

Essay

Why would an agent not disclose the existence and identity of the principal when negotiating a contract,given that doing so would avoid agent liability on the contract? What should an agent do when the principal does not want to be disclosed?

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Definitions:

Budgeted Sales

Refers to the expected amount of sales revenue a company plans to achieve during a specified period, often used for planning and performance evaluation purposes.

Beginning Inventory

The value of all goods held by a company for sale at the start of an accounting period, before any new inventory has been added or any sales have been made.

Ending Inventory

The cumulative worth of merchandise ready for sale when an accounting period concludes.

Direct Materials

Raw materials that can be directly attributed to the production of goods, forming an essential component of finished products.