The Duty of Obedience Owed by an Agent to a Principal

question 50

True/False

The duty of obedience owed by an agent to a principal is not breached and will not result in liability to the principal by an agent's refusal to do an illegal or tortious act for the principal.

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Definitions:

Business Plan

A detailed document outlining the strategy, goals, financials, and future projections of a business.

Understating Profits

The practice of reporting lower earnings than actually achieved, often for tax or strategic business reasons.

Break-Even Analysis

A calculation that determines when a business or project will be able to cover all its expenses and start generating profit, based on fixed and variable costs.

Financial Projections

Estimates of future financial performance, including income, expenses, and cash flow, over a specific period.