A __________ Agent Is Authorized by the Principal to Handle

question 35

Multiple Choice

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

• A) special
• B) general
• C) secret
• D) universal

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Definitions:

Accounting Profits

The net income for a company after all expenses have been deducted from revenues, according to generally accepted accounting principles.

Implicit Costs

The opportunity costs of using resources owned by the company for its own operations, rather than earning income elsewhere.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

Costs that represent foregone opportunities, such as the income a business owner forgoes by investing in their own company instead of elsewhere.