Complete Loss of Intellectual/legal Capacity on the Part of the Principal

question 4

Multiple Choice

Complete loss of intellectual/legal capacity on the part of the principal will:

• A)Give the principal the right to elect to terminate the agency agreement.
• B)Automatically terminate the agency unless the agent was appointed under the authority of a general power of attorney.
• C)Automatically terminate the agency unless the agent was appointed under the authority of an enduring power of attorney.
• D)Increasing the standard of care owed by the agent to the principal and broaden the scope of their duties.

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Definitions:

Minimum Cash Balance

Minimum Cash Balance is the least amount of cash a company aims to hold in its register or account to meet emergency needs or unforeseen expenses.

Sales Collection

The process of retrieving payment for goods or services provided, typically managed through invoicing and accounts receivable procedures.

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's operations.

Inventory Period

The duration of time goods remain in inventory before being sold.