Because Those Who Cannot Legally Enter into Contracts Directly Cannot

question 90

Multiple Choice

Because those who cannot legally enter into contracts directly cannot do so indirectly through an agent, a principal must

• A)put an agency agreement into writing.
• B)proffer consideration to enter into an agency relationship.
• C)have contractual capacity to be a principal.
• D)employ only one agent at any given time.

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Definitions:

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation in the United States that allows for a faster write-off of asset value for tax purposes.

Depreciation Method

A systematic approach to allocate the cost of a tangible asset over its useful life, reflecting the asset's wear and tear, decay, or decline in value.

Tax Purposes

The phrase "For Tax Purposes" refers to any actions or decisions made specifically to comply with tax laws and regulations, including the calculation of taxable income, deductions, and credits.

Financial Statement

Papers that present a summary of a corporation's financial status, covering balance sheets, income statements, and statements of cash flows.