A Contract Made by an Agent on Behalf of an Undisclosed

question 158

True/False

A contract made by an agent on behalf of an undisclosed principal is never binding on a third party who did not know about the principal.

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Definitions:

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories (assets, liabilities, and equity) is represented as a proportion of the total.

Common Size Analysis

A financial analysis technique that converts each line of financial statement data to a percentage of a base amount.

Statement Of Retained Earnings

A financial statement that outlines the changes in retained earnings for a specified period.

Dividends Paid

The total cash distributed by a company to its shareholders as a share of the profits.