On March 1, Eugene Retains Farley to Act as His

question 69

Multiple Choice

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's behalf. The contract is​

• A) ​binding on Eugene's heirs.
• B) ​binding on Farley.
• C) ​void.
• D) ​voidable.

---

Definitions:

Net Investment

The total amount spent on new capital assets minus the depreciation on existing assets.

Capital Stock

The total amount of physical and financial assets owned by a company or country, including machinery, buildings, and investments.

Inventory Investment

Investment in stockpile that companies hold to manage production and sales flow, impacting the overall business operations and financial health.

Limited Partnership

A Limited Partnership is a form of partnership in which some partners contribute capital and enjoy a share of the profit but are not liable for the debts of the partnership beyond the amount they contributed.