An Agent Must Perform Instructions Provided by the Principal

question 134

Multiple Choice

An agent must perform instructions provided by the principal. If the agent fails to do so, he violates:

• A) the duty of cooperation
• B) the duty of obedience and performance
• C) the duty to reimburse
• D) the duty of loyalty
• E) the duty of accounting

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both raw materials and labor costs.

Operating Expenses

Expenses incurred during the normal operation of a business, not including the cost of goods sold.

Supplies Expense

The cost incurred from using supplies during an accounting period, recognized as an expense.

Net Income

The total profit of a business after all expenses and taxes have been subtracted from total revenue.