Thomas Is Named "Office Manager" by Bigger Co

question 23

Multiple Choice

Thomas is named "office manager" by Bigger Co. ,but his precise duties are not described.What type of authority would authorize Thomas to purchase office supplies?

• A)Express authority
• B)Implied authority
• C)Apparent authority
• D)Operation of law authority

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Definitions:

Obligations

Duties carried by entities or individuals that arise from contractual agreements, law, or regulation requiring them to act in a certain manner.

Capital Structure

Refers to the mix of different types of debt and equity that a company uses to finance its overall operations and growth.

Productive Capacity

The maximum output or production level that can be achieved with the available inputs and resources without stressing the production system.

Direct Method

A method for presenting cash flows related to operating activities, highlighting the main categories of gross cash inflows and outflows.