Alfred Works for and Has Authority to Act on Behalf

question 42

Multiple Choice

Alfred works for and has authority to act on behalf of and bind Joel in contracts, who is his employer. Alfred would be considered ________

• A) an agent
• B) a principal
• C) an endorser
• D) a proprietary
• E) an authorizer

Understand the importance of a code of ethics being supported and enforced by management.

Recognize the role of competitive advantages and strategies in business sustainability and growth.

Distinguish between internal and external analyses in strategic planning and their impacts on identifying competitive advantages.

Understand the importance and components of a business code of ethics.

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Definitions:

Initial Value Method

An accounting method which records assets and investments at their original purchase cost.

Lower-of-Cost-or-Market-Value

An accounting principle requiring that inventory be recorded at the lower of either its historical cost or its current market value.

Book Value

The value of an asset as reported on a company's balance sheet, calculated as the cost of the asset minus any accumulated depreciation.

Impairment Model

Impairment Model is an accounting method that requires assets to be reviewed for impairment, whereby their carrying value is adjusted to reflect their recoverable amount if this is less than their current book value.