If an Agent Is Acting Within His or Her Authority

question 33

Multiple Choice

If an agent is acting within his or her authority on a contract involving an undisclosed principal, the agent is ________.

• A) liable for the agreement if it is under $5,000.
• B) not liable at all for the contract.
• C) Liable for the agreement.
• D) will split the contract remedy between he principle and agent.
• E) will only hold the principal liable.

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Definitions:

Option Expiration

The date on which an options contract becomes void and the holder no longer has rights for which it provides.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Strike Price

The predetermined price at which an option can be exercised, allowing the holder to buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Puts

Options contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.