An Agent May Have Apparent Authority to Act on Behalf

question 14

Multiple Choice

An agent may have apparent authority to act on behalf of the principal:

• A)even in the absence of actual authority.
• B)even if the third party did not know they were an agent.
• C)even in the absence of a 'holding out' by the principal.
• D)even if the third party knew the agent had no authority.

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Definitions:

Mixed Cost

A cost that contains both fixed and variable components, changing with the level of activity but not in direct proportion.

Variable Cost

Variable cost refers to expenses that change directly with the level of production or business activity, such as raw materials and labor costs.

Fixed Cost

Expenses that do not change with the level of production or sales activity, such as rent or salaries.

Work in Process-Department X

Inventory representing partially completed goods that are still in the production process within a specific department.