Which of the Following Is an Advisable Step for a Principal

question 35

Multiple Choice

Which of the following is an advisable step for a principal to take after terminating an agency relationship?

• A) Ensure the termination agreement is put into writing.
• B) Ensure that third parties are notified.
• C) Ensure an indemnity agreement is in place.
• D) Ensure the agent is informed in writing of the termination.

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Definitions:

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Short Positions

An investment strategy where an investor sells a security they do not own, betting that its price will decrease.

Futures Contract

An agreement to buy or sell a specified quantity of a commodity or financial asset at a predetermined price at a specified future date.