The Term Apparent Authority Is Used When an Appearance of Authority

question 48

True/False

The term apparent authority is used when an appearance of authority has been created by a principal, but actual authority does not exist.

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Definitions:

Material Fact

A fact that if known might have influenced the decision of a party in making a contract, agreement, or understanding.

Illegal Insider Trading

The unethical and illegal practice of trading securities based on material, non-public information.

Public Announcement

An official communication made to the general public through various media channels, often containing information of significance or relevance to a wide audience.

Proxy

An authorization granted by a shareholder for another person, often a company manager, to vote on their behalf at a company meeting or shareholders' vote.