Authority by Necessity Exists If

question 52

Multiple Choice

Authority by necessity exists if:

• A)something has to be done in an emergency situation on behalf of a principal that is within the scope of an agent's implied authority.
• B)the agent lacks actual authority but needs to do something to protect the property of the principal.
• C)there is no good faith on the part of the agent.
• D)the agent is compelled to act on behalf of the principal in order to protect the interests or property of the agent.

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Definitions:

Market Value

The market's current asking price for an asset or service.

Rental Income

Earnings received from leasing property to tenants.

Annual Taxes

Taxes that are assessed and paid once a year, commonly relating to income, property, or business revenues.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.