Which of the Following Is a Common Characteristic of Agency

question 74

Multiple Choice

Which of the following is a common characteristic of agency by estoppel and agency by ratification?

• A) the law typically favours the principal
• B) the reasonable conclusion of existence of agency
• C) the adoption of a contract after the fact
• D) the lack of the agent's authority to act

Comprehend the relationship between economic profit, accounting profit, and normal profit.

Identify the components of total production costs from an economist's perspective.

Understand the difference between implicit costs and explicit costs.

Define economic cost and its significance in decision making.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.

Par Common Stock

The nominal or face value assigned to common shares in the articles of incorporation, often having little relation to the market value.