Which of the Following Statements Is True of Termination by Operation

question 93

Multiple Choice

Which of the following statements is true of termination by operation of law?

• A) If one of the parties dies, that party's legal heir assumes the role held by that party in a principal-agent relationship.
• B) If an agent is bankrupt, a principal-agent relationship is terminated.
• C) If performance is rendered impossible by uncontrollable circumstances, a principal-agent relationship is terminated.
• D) When a principal-agent relationship is terminated by law, the principal must notify the third parties.

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Definitions:

Market Index

A statistical measure that represents the value of a section of the stock market, compiled from the prices of selected stocks to gauge market trends or portfolio performance.

Active Portfolio

An investment portfolio that is actively managed with the goal of achieving returns that outperform a specific benchmark or market index.

Distressed Firms

Companies experiencing financial difficulties, often facing bankruptcy or restructuring.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuer's stock, at the option of the bondholder.