Which of the Following Is a Duty a Principal Has

question 5

Multiple Choice

Which of the following is a duty a principal has toward his agent?

• A) A principal must provide the agent with a record of all his monetary transactions.
• B) A principal must compensate the agent for his services.
• C) A principal must keep his agent informed of his financial activities.
• D) A principal must obey routine instructions from his agent.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Profit Maximizing Price

The price level at which a business can achieve the highest profit possible, based on its production costs and demand for its products.