Authority by Necessity Is the Authority of an Agent That

question 43

Multiple Choice

Authority by necessity is the authority of an agent that:

• A)Arises when something has to be done in an emergency situation on behalf of a principal that is within the scope of an agent's pre-existing implied authority.
• B)Arises when someone, whether or not already an agent of the principal, needs to do something to protect the property of the principal.
• C)Exists regardless of whether or not good faith is present on the part of the agent.
• D)Is expressly or impliedly given by the principal to their agent in a situation in which the principal's property is under threat.

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Definitions:

Corporate Finance

The division of finance dealing with how corporations address funding sources, capital structuring, and investment decisions.

CFO

Chief Financial Officer; a senior executive responsible for managing the financial actions of a company.

Operating Costs

Expenses associated with the day-to-day operations of a business, including costs of goods sold (COGS) and operating expenses (OPEX).

Controlling

The process of monitoring business performance by comparing actual results with expected outcomes to make necessary adjustments.