Which of the Following Statements Is True of the Duty

question 4

Multiple Choice

Which of the following statements is true of the duty of loyalty?

• A) It requires agents to live up to the standards of performance expected of people in their occupation.
• B) It assigns an agent the duty to follow all reasonable and lawful instructions of a principal.
• C) It requires agents to keep accurate books that can be viewed by principals.
• D) It mandates that an agent act on behalf of one principal only to avoid conflicts of interest.

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Definitions:

TVC

Total Variable Cost; the entire cost associated with producing a given output level that varies with the quantity of output.

Increasing Rate

A situation where something grows or rises in value at a progressively higher pace over time.

Marginal Cost

The expenditure associated with creating another single unit of a product or service.