Morgan,an Agent,was Instructed to Sell Drew's Property at a Specified

question 42

Multiple Choice

Morgan,an agent,was instructed to sell Drew's property at a specified "firm" price of $450,000.A month later,the value of the property decreased substantially to $75,000 because of zoning changes.What is the status of the agency relationship?

• A)Most likely,the agency is terminated because of impossibility.
• B)It would terminate unless Drew had given Morgan a durable power of attorney.
• C)It becomes an agency coupled with an interest,and continues unaffected by any change what so ever.
• D)It requires the agent to compensate the principal with less compensation.

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Definitions:

Test Statistic

A calculated value from sample data, used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Random Samples

A subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.

Rejected

In statistical analysis, refers to the decision to discard the null hypothesis based on the evidence from sample data and the predetermined significance level.

F-distribution

A continuous probability distribution that arises in the analysis of variances for comparing sample variances, used in ANOVA tests.