Which of the Following Is a Condition for an Agency

question 9

Multiple Choice

Which of the following is a condition for an agency by ratification to be effective?

• A) A principal must give prior authorization to an agent.
• B) A principal should lead a third party to believe that an individual is his or her agent.
• C) The existence of a principal must be clear to a third party at the time of an agent's unauthorized act.
• D) An agent must carry an authorization letter that establishes that he or she is the principal's agent.

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Definitions:

Capital

A resource that can serve to generate wealth, such as factories, equipment, investment accounts, software, land, and education.

Gross Domestic Product Per Capita

A measure of a country's economic output that accounts for its number of people, essentially the average economic output per person.

Net National Income Per Capita

A measure that represents the total income of a nation divided by its population, indicating the average income per person.

Gross National Income Per Capita

The total domestic and foreign output claimed by residents of a country, divided by the population of the country.