Generally, the Liability of a Principal on a Contract Formed

question 101

True/False

Generally, the liability of a principal on a contract formed by an agent with a third party depends on whether the agent was authorized to act.

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Definitions:

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from an investment equal to zero.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Present Value Factor

A factor used in calculating the present value of a cash flow that will be received or paid at a future date.

Desired Rate

An expected or targeted rate of return or interest rate that an individual or company aims to achieve on investments or projects.