An __________ Occurs If a Principal Approves or Accepts the Benefits

question 35

Multiple Choice

An __________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

• A) agency by ratification
• B) agency by estoppel
• C) agency by independent action
• D) agency by intervention

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Definitions:

Patent

A legal right granted to an inventor for an exclusive period, typically 20 years, to exploit a new, useful, and non-obvious invention.

Consolidated Cash Flows

A statement merging the cash flows of a parent company and its subsidiaries to present the overall cash generated or used by the entire group.

Equity Method

An accounting technique used to record investments in other companies by recognizing income and changes in investment value.

Voting Shares

Stocks that allow the holder to participate in voting on corporate issues, including the election of board members.