A Principal Is Contractually Bound to a Third Party If

question 61

True/False

A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.

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Definitions:

Control Process

The systematic procedure that ensures organizational activities and outputs meet established standards, involving setting, measuring, and correcting.

Feedback

Information provided as a response to a process or activity, used to support improvement and guide future actions.

Mistakes

Errors or faults in action, decision, or judgment that can lead to unforeseen outcomes or learning opportunities.

Internal Control

A process implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.