Which of the Following Is Correct with Respect to an Agent's

question 192

Multiple Choice

Which of the following is correct with respect to an agent's performance of his duties?

• A) The agent may profit at the expense of the principal if the agent comes into some previously unknown information.
• B) The agent must never take advantage of the third party.
• C) The agent must never compete with the principal.
• D) When an agent fails to act in the best interest of the principal and is an independent contractor, this is just cause for constructive dismissal.
• E) The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.

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Definitions:

Deceased Partner

Refers to a partner in a partnership who has passed away, impacting the management and operations of the business.

Accounting

A review and listing of all partnership assets and/or profit.

Distribution to Partners

Refers to the distribution of profits, income, or assets from a partnership to its partners, typically in proportion to their ownership interests.

Managing Partner

A member of a partnership who has the authority and responsibility for managing the everyday operations of the business.