Which of the Following Statements Is True of Contracts of Agency

question 16

Multiple Choice

Which of the following statements is true of contracts of agency?

• A) The legal requirements to be an agent are always the same in all states.
• B) Corporations cannot act as agents in contracts of agency.
• C) Every agent must possess a valid license that authorizes him to act as one.
• D) All people legally competent to act for themselves may act through an agent.

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Definitions:

Investment Account

An account held at a financial institution, enabling individuals or entities to hold and manage their investment portfolios.

Goodwill

A non-physical asset that is recognized when one business buys another at a cost exceeding the fair market value of its net recognizable assets.

Goodwill

An intangible asset that represents the premium paid over the fair value of the net identifiable assets of a company during an acquisition.