If the Principal Owes Money to the Agent and the Agent

question 62

Multiple Choice

If the principal owes money to the agent and the agent holds some of the principal's property, the agent may:

• A)Sell the property or hold the property until the money is paid.
• B)Sell the property and recover the amount of money owed to them.
• C)Hold the property until the money is paid.
• D)Hold the property until the principal asks for it.

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Definitions:

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses without government intervention.

Negative Externality

A situation where a third party suffers costs or harm as a result of an economic transaction between other parties, without compensation, such as pollution from a factory affecting nearby residents.

Property Values

The monetary worth assigned to real estate, determined by various factors including location, size, and condition of the property.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the additional satisfaction or benefit gained.