It Is Evident, from the Labels on Our Clothes to the Components

question 5

Multiple Choice

It is evident, from the labels on our clothes to the components in our cars and instantaneous communications, that our world is becoming a________ village.

• A) national
• B) micro
• C) global
• D) regional
• E) state

Identify the scenarios in which principals are liable for agents’ misrepresentations.

Understand the concept of direct liability and respondeat superior liability.

Know how express authority is created and utilized in agency relationships.

Analyze the protective measures for third parties under apparent authority doctrine.

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Definitions:

Short-Duration

Describes investments or financial instruments that have a short time until maturity, typically less than one year.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment or project.

Cash Inflows

Money or other forms of financial assets that enter a company, typically from sales, investments, financing, and other business activities.

Depreciation Value

The reduction in value of an asset over time due to wear and tear or obsolescence.