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If an Agent Exceeds the Scope of His or Her

question 30

True/False

If an agent exceeds the scope of his or her authority,the principal is not liable on the contract unless the principal ratifies it.


Definitions:

Accounts Payable

Accounts payable are liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Operating Cash Flow

The money produced through the regular operational functions of a company during a particular timeframe.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenues.

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