____ Is When an Agency Is Created Because the Actions

question 238

Multiple Choice

____ is when an agency is created because the actions of the principal may lead one to reasonably believe that the presumed agent has the authority to act for the principal.

• A) Agency by practicality
• B) Agency by permission
• C) Agency by ratification
• D) Agency by demand
• E) none of the other choices are correct

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Definitions:

Factors

Elements or conditions that contribute to producing a specific outcome or effect.

Notes Receivable

Financial assets representing amounts owed to the holder by others through formal written promises to pay at a future date.

Credit Period

The time frame allowed by a seller for a buyer to pay for goods or services, typically expressed in days.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.