When a Principal's Conduct Appears Consistent with the Existence of an Agency

question 385

True/False

When a principal's conduct appears consistent with the existence of an agency relationship, an agency by estoppel may be created.

---

Definitions:

Financial Reporting

The practice of formulating disclosures that present an enterprise's fiscal health to its leadership, stakeholders, and state authorities.

Product Costs

Expenses directly incurred in the creation of a product, including raw material, labor, and manufacturing overhead costs.

Direct Costs

Costs that can be directly traced to producing specific goods or services, such as direct labor and direct materials.

Direct Manufacturing Cost

Expenses directly tied to the production of specific goods, including materials and labor.