If Jack Sparrow Uses a Chest of Pieces of Eight

question 238

Multiple Choice

If Jack Sparrow uses a chest of pieces of eight to buy a ship, then the gold is functioning as a:

• A) unit of account.
• B) store of value.
• C) medium of exchange.
• D) barter.

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Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions of the principal, leading others to believe that an agent has the power to act on behalf of the principal.

Actual Authority

The express and implied powers granted to an agent by the principal.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal. Also called unidentified principal.

Apparent Authority

A form of authority that a third party perceives to exist based on the principal’s behavior, even if no actual authority has been granted by the principal to the agent.