In Certain Cases, a Third Party Can Hold a Principal

question 70

Multiple Choice

In certain cases, a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his principal and even though his principal elected not to ratify the contract made by the agent. The third party can enforce the contract because of

• A) the reasonable agent theory.
• B) agency by express agreement.
• C) the failure of the principal to register the agency agreement.
• D) the agent's apparent authority.
• E) fiduciary duty.

Recognize the ideological differences between conservatives and liberals regarding the causes and solutions to poverty.

Grasp the significance of income shares across different segments of the population.

Identify the relationship between educational attainment and income distribution.

Understand the impact of various forms of public assistance and non-cash benefits on poverty statistics.

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Definitions:

Adverse Selection

A situation in economics and insurance where parties with higher risk are more likely to engage in an agreement, leading to unbalanced and unfavorable outcomes for one of the parties.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.

Economic Growth

The growing ability of the economy to produce goods and services.

Industry-specific

Pertains to aspects or characteristics unique to a particular industry or sector.