A Gratuitous Agent

question 67

Multiple Choice

A gratuitous agent:

• A) is a paid agent.
• B) is subject to the same duty of loyalty as other agents.
• C) has no duty of diligence.
• D) need not be reimbursed for her expenses.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Days' Sales Uncollected

A financial ratio indicating the average number of days it takes for a company to collect revenue after a sale has been made.

Accounts Receivable

Money owed to a company by its customers from sales or services on credit that is expected to be paid within a short duration, usually one year.

Inventory Turnover Ratio

A financial metric that measures how many times a company has sold and replaced its inventory over a specific period.