Which One of the Following Statements Is TRUE

question 48

Multiple Choice

Which one of the following statements is TRUE?

• A) An agency relationship is when a principal hires an agent to perform a service and gives them decision-making authority.
• B) An agency relationship is when a principal works for an agent.
• C) In an agency relationship, the agent delegates authority to the principal.
• D) An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
• E) An example of an agency relationship is when a supervisor hires a forklift operator.
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Definitions:

Net Sales

The revenue from sales after deducting returned goods, allowances for damaged or missing goods, and any discounts allowed.

Cost Of Goods Sold

The expenditures directly associated with manufacturing goods that a company sells, consisting of materials and labor.

Departmental Gross Profit

The gross profit of a specific department within a business, calculated by subtracting the cost of goods sold from the sales revenue of that department.

Photography Department

A specialized division within a company or institution focused on photographic services, including taking, editing, and selling photographs.