According to the 'Indoor Management Rule' a Person Dealing with a Company

question 21

Multiple Choice

According to the 'indoor management rule' a person dealing with a company in good faith:

• A)Need never be concerned about whether or not the company is complying with its constitution.
• B)Should assume that persons acting on behalf of the company are not acting in accordance with the rules of its constitution unless the contrary is proven.
• C)Can generally assume that persons acting on behalf of the company are acting according o the rules of its constitution.
• D)Cannot legally contract with a person who does not have authority to contract with them under the rules of their company's constitution.

---

Definitions:

Inelastic

A characteristic of goods whose demand or supply is not significantly affected by changes in price.

Nondiscriminating Monopolist

A monopolist who charges the same price for all units of output sold, not engaging in price discrimination between different consumers.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly when its price changes.

Imperfectly Competitive Market

A market structure where the assumptions of perfect competition, such as identical products and many buyers and sellers, are not fully met.