A(n) ____Is Liable to a Third Party for a Contract

question 143

Multiple Choice

A(n) ____is liable to a third party for a contract made by an agent who had actual authority to act on behalf of the principal.

• A) undisclosed principal
• B) clear principal
• C) specific principal
• D) legitimate principal
• E) none of the other choices are correct

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Definitions:

Reciprocal Method

An accounting method used for allocating costs between interdependent departments, accurately reflecting the shared services costs.

Mutual Provision

Mutual provision relates to the sharing or exchange of services, resources, or benefits between parties, often within a cooperative or collaborative framework.

Support Department Cost Allocation

The process of distributing indirect costs from support departments, such as Human Resources or IT, to operational departments or product lines.

Dual Cost Allocation

A method of cost allocation that involves assigning costs to two or more objects without arbitrarily dividing them.