If the Principal Terminates the Agency: ______

question 53

Multiple Choice

If the principal terminates the agency: ______.

• A) the agent's authority to act for the principal is terminated automatically.
• B) the right of the agent to bind the principal to third persons generally ends immediately.
• C) the termination is not effective until notice is given to third parties.
• D) the termination is not effective until the agent receives the notice.

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Definitions:

Dilemma of Regulation

The challenge of finding the right balance in regulatory policies, where too much regulation can stifle innovation and economic growth, while too little can lead to market failures and exploitation.

Natural Monopolies

Situations in which a single firm can supply a good or service to an entire market more efficiently than multiple firms could, often due to high infrastructure costs making competition impractical.

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society, considering both production and desires of consumers.