The Authority That an Agent Has Because the Principal Leads

question 31

Multiple Choice

The authority that an agent has because the principal leads third parties to believe that the agent has it is called

• A) implied authority.
• B) customary authority.
• C) apparent authority.
• D) none of these.

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Definitions:

Repurchase Outstanding

A corporate finance strategy where a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Current Ratio

A ratio that determines a company's capacity to fulfill immediate financial commitments using its present assets.

Total Debt Ratio

A financial metric that compares the total debt of a company to its total assets, indicating the leverage and financial risk of the company.

Liquidity Ratios

Financial ratios that measure a company's ability to meet its short-term obligations with its liquid assets.