An Agent Who Acts Without Actual Authority but with Apparent

question 35

Multiple Choice

An agent who acts without actual authority but with apparent authority is likely to be:

• A)In breach of the duty to follow the principal's instructions.
• B)In breach of the duty not to delegate.
• C)Prosecuted.
• D)Personally liable.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, representing the amount before operating expenses, interest, and taxes are deducted.

LIFO Method

The Last In, First Out method for inventory valuation where the most recently produced or purchased items are the first to be expensed.

Operating Profit or Loss Test

A financial assessment that determines a company's profitability from its core business operations, excluding income and expenses from unusual, non-recurring, or financial activities.

Operating Segments

Components of a business for which separate financial information is available and is evaluated regularly by the entity's chief operating decision maker.