Jan Hires Duncan to Act as Her Agent in Acquiring

question 47

Multiple Choice

Jan hires Duncan to act as her agent in acquiring some property for the development of a new subdivision she is planning that will be an elegant planned community. Jan instructs Duncan that he is not to say he is working for her or, for that matter, that he is working for anyone. If Duncan enters into a contract for land for Jan that is the parcel she wanted:

• A)Duncan only is liable on the contract for the purchase of the land.
• B)Jan can never be held liable for the land because Duncan acted in his name.
• C)both Jan and Duncan are liable on the contract for the purchase of land.
• D)it is fraud to conceal the identity of a party to a contract.
• E)None of the above

---

Definitions:

Return on Investment

A profitability metric that measures the gain or loss generated on an investment relative to the amount of money invested.

Operating Assets

Assets required for a company to conduct its daily business operations, including both current and long-term assets.

Margin

The difference between the sales price of a good or service and its cost, expressed as a percentage of the sales price.

Investment Centre

A segment or area of a business responsible for both its revenue and its investments.