An Agent Who Wishes to Avoid Liability on Contracts He

question 66

Multiple Choice

An agent who wishes to avoid liability on contracts he enters into on behalf of the principal should make sure that the principal is:

• A) undisclosed
• B) partially disclosed
• C) either partially disclosed or fully disclosed
• D) fully disclosed
• E) the degree of disclosure is irrelevant

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Definitions:

Quality Management Analyst

A professional who assesses and analyzes the quality management systems of an organization to ensure compliance with standards and to identify opportunities for improvement.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in a decreased cost per unit.

Long-run Average Total Cost

The long-run average total cost is the per-unit cost of production when all inputs can be adjusted, reflecting the most cost-efficient scale of operation.

Long-run Total Costs

The total costs incurred by a firm when all inputs are variable and can be adjusted.