If an Agent Contracts Outside the Scope of His or Her

question 77

True/False

If an agent contracts outside the scope of his or her authority, the principal cannot become liable.

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Definitions:

Capital Contributions

Funds or other assets contributed to a corporation or partnership by its owners or partners to support the organization's operations or to increase its equity.

Total Capital Balance

The sum of a company's long-term debt, equity, and retained earnings.

Income Distribution

A statistical measure detailing the way in which total income is spread across the individuals or households within a specific economy.

Net Income

A company's overall earnings following the deduction of all costs, taxes, and expenses from its total revenue.