Meryl Is an Avid Doll Collector and Has Been Searching

question 19

Multiple Choice

Meryl is an avid doll collector and has been searching for the Beach Doll to complete her 200-piece collection. There were only 5 Beach Dolls created in the world. Meryl is envious of her neighbor Nancy, who has the first Beach Doll ever created. Nancy refuses to sell the doll because she thinks it will be worth a million dollars someday. While Nancy is on vacation, Meryl hires Alex to steal the doll from Nancy's home. Has an agency relationship been formed?

• A) No, because the agreement must be in writing.
• B) No, because the agreement has an illegal purpose.
• C) No, because the amount or form of compensation was not contemplated.
• D) Yes, because the agreement may be oral or in writing.
• E) Yes, because Alex's objective was unambiguous.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of the lower-level budgets within an organization, projecting its overall financial activities.

Service Revenue Budget

It outlines the expected revenue from services provided over a specific period, forming part of a company's overall budgeting process.

Sales Budget

A financial projection that estimates future sales, usually in terms of both volume and revenue.

Operating Expenses

Costs associated with the day-to-day activities of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.