When a Principal Makes It Possible for an Agent to Defraud

question 67

True/False

When a principal makes it possible for an agent to defraud a third party, the principal may also be liable for the fraud.

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Definitions:

Red Tape

Excessive bureaucracy or adherence to rules and formalities, especially in public sector organizations, leading to slow or complicated administrative procedures.

Line Positions

Roles in an organization that are directly involved in the core business operations, such as production and sales.

Authority

The power or right granted to an individual or organization to make decisions, give orders, and enforce obedience.

Market Share

The portion of a market controlled by a particular company or product, expressed as a percentage of total sales in that market.