Which of the Following Is Correct with Regard to the Capacity

question 55

Multiple Choice

Which of the following is correct with regard to the capacity of an agent?

• A) The incapacity of the agent disqualifies him from making a contract that is binding on his principal.
• B) Business associations do not have the capacity to act as agents.
• C) If an incompetent person who is not under guardianship appoints an agent,contracts made by that agent are voidable.
• D) Electronic agents,although not persons,are considered agents.

Understand the factors influencing obedience and resistance to authority.

Comprehend the ethical implications and psychological effects of obedience experiments.

Identify conditions under which obedience to authority is more or less likely.

Recognize the role of culture, situation, and group influence on obedience and prosocial behavior.

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Definitions:

R&D Expenditures

Funds allocated towards research and development activities with the aim of introducing new products or improving existing ones.

Optimal Amount

The most efficient, effective, or desirable quantity of a good or resource to achieve a specific goal or maximize utility.

R&D

Research and Development; activities in businesses and organizations aimed at gaining new knowledge and applying it to develop new products, services, or processes.

Interest-Rate Cost-of-Funds

The cost of obtaining funds to borrow, typically described as an interest rate, representing the lender's compensation for the risk and time value of money.