Which of the Following Is True Regarding Agency Contracts

question 24

Multiple Choice

Which of the following is true regarding agency contracts?

• A) Agency contracts must clearly define the agent's compensation.
• B) A contract is not required to create an agency but if a contract exists, it must meet all requirements prescribed by contract law.
• C) A contract is required to create a valid agency
• D) An agency contract cannot create an agency agreement longer than two years.
• E) An agency contract only needs to be signed by the principal.

Evaluate trade benefits based on comparative and absolute advantages.

Differentiate between absolute and comparative advantage.

Understand the importance of opportunity cost in trade decisions.

Analyze production possibilities and potential benefits from trade.

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Definitions:

Long-Term

Referring to a time period that extends beyond one year, often used in the context of investments, loans, or strategic planning.

Intermediate

A middle stage or level between basic and advanced.

Short

In finance, taking a position in which you sell a security you do not own, with the intention of buying it back at a lower price.

Equity Securities

Financial assets that represent shares of ownership in a corporation, such as stocks, granting holders a claim on the corporation’s profits and assets.