Which of the Following Is a Course of Action for a Principal

question 76

Multiple Choice

Which of the following is a course of action for a principal if an agent is found competing with him or her?

• A) The principal can recover damages from the agent if the competition continues after the agency has ended.
• B) The principal can recover profits made by the agent.
• C) The principal is given an option of buying the agent's competing venture.
• D) The principal is not allowed to recover for lost sales due to the agent's competing venture.

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Definitions:

Materials

Raw resources or inputs used in the manufacturing or production process to create goods and services.

Equivalent Units

A concept in process costing used to compute the amount of complete units that could have been produced given the total amount of work done.

Weighted-Average Method

An inventory valuation method that averages the cost of all similar goods available during a period to determine the cost of goods sold and ending inventory value.

Conversion Costs

Expenses related to turning raw materials into complete goods, usually encompassing direct workforce costs and manufacturing overhead expenses.