A Principal Whose Identity Is Unknown to a Third Party

question 58

True/False

A principal whose identity is unknown to a third party who has no knowledge that the agent is acting in an agency capacity is legally known as an undisclosed principal.

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Definitions:

Long-Run Exposure Risks

Risks that a business faces over an extended period that can impact its financial stability, such as exchange rate fluctuations.

Foreign Exchange

The conversion or trading of one currency into another currency.

Triangle Arbitrage

A risk-free profit that arises from discrepancies between three foreign currencies in the foreign exchange market.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.