Express Ratification Creating an Agency by the Principal Occurs When

question 187

Multiple Choice

Express ratification creating an agency by the principal occurs when the principal:

• A) fails to object to an agent's unauthorized activities
• B) by action shows a clear intent to be bound by unauthorized acts of the agent
• C) accepts the benefits of an unauthorized agreement with a third party
• D) all of the other specific choices
• E) none of the other choices

---

Definitions:

Downward Communication

The flow of information from higher levels of a hierarchy to lower levels within an organization or group.

Upward Communication

The flow of information from lower levels of a hierarchy to the higher levels, such as from employees to management.

Horizontal Communication

The exchange of information, ideas, or feedback among individuals or teams at the same hierarchical level within an organization.

MUM Effect

Keeping mum about undesirable messages (choosing not to share bad news).