Unregulated Companies That Seek to Exploit Various Market Opportunities and Require

question 40

Multiple Choice

Unregulated companies that seek to exploit various market opportunities and require a substantial investment from investors are known as:

• A) derivatives.
• B) options.
• C) hedge funds.
• D) MMFs.

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Definitions:

Apparent Authority

Apparent authority refers to a situation where someone reasonably believes another has the authority to act on behalf of an organization due to the organization's actions or communications.

Principal

The primary individual or entity involved in a transaction or contract, or a sum of money lent or invested on which interest is paid.

Actual Authority

The express and implied powers granted by a principal to an agent to enter into contracts or make decisions on behalf of the principal.

Apparent Authority

A doctrine in law where a principal leads a third party to believe that an agent has the authority to act on the principal's behalf, even if the agent doesn't have actual authority.