An Agent's Duty to Inform

question 73

Multiple Choice

An agent's duty to inform:

• A) applies to material and nonmaterial facts relating to the agency.
• B) does not apply if providing facts to the principal would violate a superior duty owed by the agent to another person.
• C) arises because notice to an agent does not constitute notice to the principal.
• D) All of these.

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Definitions:

Accounting Figures

Quantitative values or financial numbers that are recorded from business transactions in the financial statements.

Actual Cash Flows

The real movement of money in and out of a business or investment, excluding any projections or estimates.

Cash Flow Position

An assessment of the amount of cash a company generates and uses during a period.

Times Interest Earned Ratio

A financial metric calculating how many times a company can cover its interest payments on outstanding debt with its earnings before interest and taxes.