A 'Gratuitous Agent' Is

question 12

Multiple Choice

A 'gratuitous agent' is:

• A)An agent paid at a higher rate than usual.
• B)An agent who agrees to act without being paid by the principal.
• C)An agent who is reimbursed but not indemnified.
• D)An agent who has exercised a lien over the principal's property.

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Definitions:

Inflation

The speed at which the overall price level of goods and services increases, diminishing the buying power.

Intrinsic Value

The perceived or calculated true value of an asset, based on fundamentals, without regard to market value.

Actual Stock Price

The current trading price of a company's shares on the stock market.

Required Return

This is the percentage yield that an investor expects to earn from an investment to make it worthwhile.