If the Act of an Agent Is Ratified

question 108

Multiple Choice

If the act of an agent is ratified:

• A)there is retroactive authority for the act.
• B)the principal has agreed to allow the agent to be liable.
• C)the agent then has express authority for that act in the future.
• D)none of the above

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the core profitability of a company's products or services before deducting operating expenses.

Inventory Included

This refers to all items of merchandise, raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale or production.

Periodic Inventory System

An inventory system where the inventory count is physically conducted at specific intervals to determine the ending inventory balance and cost of goods sold.

Perpetual Inventory System

An inventory management method that continuously tracks inventory levels and updates after every transaction.