The Only Type of Principal-Agent Relationship That May Not Be

question 37

Multiple Choice

The only type of principal-agent relationship that may not be revoked by the principal is a(n)

• A) gratuitous agency.
• B) independent contractor relationship.
• C) renunciable agency.
• D) agency coupled with an interest.

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Definitions:

Financial Institution

An organization that provides financial services, such as banking, insurance, investment management, and loans to individuals, businesses, and governments.

Paid-In Capital

Funds raised by a company through the issuance of shares to shareholders, representing capital contributed to the business above the nominal or par value of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or existing shareholders for sale.