Unless They Make an Agreement in Advance About the Term

question 30

True/False

Unless they make an agreement in advance about the term of the agreement, either party to an agency relationship has the power to terminate it at any time.

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Definitions:

Ethical Standards

The principles that guide behavior and decision-making based on notions of right and wrong.

Risk Compartmentalization

The division of risks into different categories or compartments in an organization, which can lead to disjointed risk management and a failure to recognize the aggregate extent of risks.

Profit Centers

Individual units or divisions within a company that are responsible for generating their own revenue and profit.

Code of Ethics

A document outlining the principles and values that guide the behavior of individuals within an organization, setting standards for ethical conduct.