If an Agency Agreement Did Not Specify How Much an Agent

question 267

Multiple Choice

If an agency agreement did not specify how much an agent would be paid for his work, the principal has a ____ the "customary" amount.

• A) duty to cooperate
• B) duty to compensate
• C) duty of obedience to
• D) duty to indemnify
• E) none of the other choices would apply

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Definitions:

Total Asset Turnover Ratio

The total asset turnover ratio measures how efficiently a company uses its assets to generate sales, calculated by dividing revenue by total assets.

Sales Revenue

Income received from selling goods or services over a period of time.

Total Assets

Total assets encompass all the resources owned by a company, valued in monetary terms, which include both current and noncurrent assets.

Unadjusted Trial Balance

A report listing all the accounts and their balances before any adjusting entries are made, used to check the equality of debits and credits.