Which of the Following Is True of an Apparent Agency

question 8

Multiple Choice

Which of the following is true of an apparent agency?

• A)The authority of an apparent agent is implied from the conduct of the parties.
• B)The third-party is not bound to the contract created by an apparent agent.
• C)The principal is bound to the contracts entered into by an apparent agent.
• D)The actions of an apparent agent create an apparent agency.

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Definitions:

Partnership Liabilities

Debts and obligations for which partners in a business partnership are mutually responsible.

Salaries

Employee pay based on a specified amount rather than an hourly rate.

Interest

The cost of borrowing money or the return on invested funds, typically expressed as a percentage rate over a period of time.

Capital Account

An account used to summarize the owner's equity in a business, including funds contributed by investors or profits retained in the business rather than distributed.