Although He Had No Actual or Implied Authority to Do

question 32

Multiple Choice

Although he had no actual or implied authority to do so,while the owner of Acta Investments was away,her long-time executive assistant entered into a one-year lease contract with a photocopier company.As it turns out,the contract is very favourable to Acta.In which situation would Acta be unable to ratify the lease contract by its "agent"?

• A) where the contract favours Acta
• B) where the contract favours the "agent"
• C) where Acta fails to act within a reasonable time
• D) where the "agent" lacked actual authority

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Definitions:

Production Costs

The total expense related to the manufacturing or production of goods, including raw materials, labor, and overhead.

Selling and Administrative Expenses

Costs not directly tied to the production of goods or services, such as sales force and management salaries, advertising, and other administrative services.

Master Budget

An comprehensive financial plan that includes all of the smaller budgets within an organization, providing a complete picture of its financial activity and expectations.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for manufacturing goods.