Which of the Following Statements Is True About the Power

question 63

Multiple Choice

Which of the following statements is true about the power of attorney?

• A) For business purposes, an agent's authority is determined by customs, circumstances, and the facts of a situation rather than a written or oral agreement.
• B) It permits a principal to deny that someone is the principal's agent after leading a third party to believe that the person is an agent.
• C) It is formed when an unauthorized act of an agent is accepted by a principal.
• D) It gives an agent the authority to sign legal documents on behalf of a principal.

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Definitions:

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Demand Curve

An image that depicts how the price level of a good or service influences its required quantity within a designated period.

Number of Buyers

The total quantity of individuals or entities in a market that are potential or actual purchasers of goods and services.

Complement

A good or service that is used in conjunction with another good or service, often enhancing the value or use of the primary product.