In Which of the Following Situations Does the Agent Have

question 61

Multiple Choice

In which of the following situations does the agent have no liability to third parties?

• A)contract entered into with express authority and a fully disclosed principal
• B)contract entered into with no authority but later ratified in full by the principal
• C)contract entered into for a corporation before the corporation was formed but with full knowledge and support of the incorporators
• D)The agent has no liability in any of the above.

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Definitions:

Legal Firm

A business that provides legal services and is staffed by lawyers.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their use of resources.

Activity Rate

The cost driver rate that is used to assign activity costs to products or services based on their consumption of the activity.

Cost Pools

Groups of individual costs combined to allocate costs more efficiently.