An Agent May Have Apparent Authority to Act on Behalf

question 33

Multiple Choice

An agent may have apparent authority to act on behalf of the principal:

• A)Even in the absence of actual authority.
• B)Even if the third party did not know they were an agent.
• C)Even in the absence of a 'holding out' by the principal.
• D)Even if the third party has not acted in good faith.

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Definitions:

Reissue

The process of issuing again, such as reissuing shares or securities that have been bought back or cancelled.

Share Capital

The money that a company raises through the issue of shares, representing the capital invested by shareholders.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Balance Date

The specific date at which the financial position of a company is measured and reported, often the end of the fiscal year.