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:

Capital Budgeting

The process by which a business evaluates and selects long-term investment projects.

Product Markets

Venues where goods and services are traded between producers and consumers.

Rate Of Return

A measure of the profitability of an investment, calculated as the percentage ratio of profit or loss to the initial investment cost.

Assigned

In derivatives trading, it refers to the notification that an option holder has decided to exercise their option.