If an Agent Commits a Crime of Which the Principal

question 39

Multiple Choice

If an agent commits a crime of which the principal is unaware,

• A) the principal can be held liable.
• B) the agent can be held liable.
• C) both the agent and the principal can be held liable.
• D) none of these.

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Definitions:

Quality Cost Report

A detailed analysis outlining the expenses related to ensuring the quality of products or services, including costs of prevention, appraisal, and failures.

Prevention Costs

Costs associated with actions taken to avoid defects in products or services before they happen.

Appraisal Costs

Costs associated with evaluating and inspecting products or services to ensure they meet quality standards.

Quality Cost Report

A summary of the total expenses associated with preventing, detecting, and correcting defects in products, including appraisal, prevention, and failure costs.