The Agent's Ability to Transact Business on Behalf of and for the Principal

question 131

Multiple Choice

The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses:

• A) actual authority
• B) apparent authority
• C) quasi-authority
• D) actual or apparent authority
• E) actual or apparent authority or quasi-authority

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Definitions:

Algorithm

A methodical, logical rule or procedure that guarantees solving a particular problem. Contrasts with the usually speedier—but also more error-prone—use of heuristics.

Trial and Error

A problem-solving method involving repeated, varied attempts which are continued until success is achieved or the agent stops trying.

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than algorithms.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used in problem-solving and judgment situations.