Which of the Following Statements Is True of the Duty

question 79

Multiple Choice

Which of the following statements is true of the duty of compensation?

• A) It does not permit an agent to be paid on a contingency fee basis.
• B) If the parties in an agency cannot agree on the amount, courts will usually award the compensation claimed by one of the parties.
• C) It requires a principal to compensate an agent for any losses incurred when the agent is acting on behalf of the principal.
• D) It requires a principal to compensate an agent for services rendered even in the absence of a written agreement.

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Definitions:

Incremental Value

The additional or extra value generated by making a specific business decision, considered when evaluating multiple options.

Earnings per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

Merger Premium

The additional cost or amount by which a company's purchase price exceeds the pre-merger valuation of the target company.

Stand-Alone Value

The intrinsic worth of an investment or project if undertaken independently, without considering synergies or external factors.