Which of the Following Is a Course of Action for a Principal

question 137

Multiple Choice

Which of the following is a course of action for a principal if an agent is found competing with him or her?

• A)The principal can recover damages from the agent if the competition continues after the agency has ended.
• B)The principal can recover profits made by the agent in the competing venture.
• C)The principal has the option of buying the agent's competing venture.
• D)The principal is not allowed to recover lost sales due to the agent's competing venture.

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Definitions:

Machine Breakdowns

Refers to the unexpected failures or malfunctions of machinery that disrupt the production process or operations.

Materials Spoilage

The portion of raw materials that becomes unusable and is discarded during the production process.

Direct Labor

Labor costs directly attributed to the production of goods or services, such as wages paid to factory workers or assembly line employees.

Direct Materials

Raw materials that can be directly associated with the production of a product and are included in the final product.