Which of the Following Agents Would Not Have Authority to Contract

question 35

Multiple Choice

Which of the following agents would not have authority to contract with third parties on behalf of the principal?

• A) A salesman who sells his employer's goods.
• B) A manager who hires employees for the store owner.
• C) A factory worker hired to operate a machine.
• D) A buyer who regularly buys merchandise for a store.
• E) All agents have authority to contract with third parties on behalf of their principals.

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Definitions:

Succession Plan

A strategy for identifying and developing future leaders in an organization, ensuring continuity in critical positions.

Family Businesses

Enterprises owned and operated by multiple family members, often passing management and ownership through generations.

Sufficient Know-How

Adequate knowledge and skills required to accomplish tasks or solve problems effectively.

High Failure Rate

A situation where a significant number of attempts or initiatives do not meet the intended objectives or outcomes.