Where a Third Party Contracts with an Undisclosed Principal Via

question 35

Multiple Choice

Where a third party contracts with an undisclosed principal via an agent, the principal will still be able to enforce the contract with the third party unless:

• A)the agent did not have authority to act for the principal or the agent told the third party that they were acting on their own behalf.
• B)the agent did not act in good faith.
• C)the third party chooses not to proceed with the contract.
• D)the terms of the contract are unfair to the third party.

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; the higher the turnover, the better.

Current Ratio

An indicator of a company's ability to meet short-term debt obligations; calculated by dividing current assets by current liabilities.

Fixed Assets

Fixed assets are long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Inventory Turns

A measure of how quickly inventory is sold and replaced over a period, indicating the efficiency of inventory management.