An Agent Does Not Owe a Duty to Notify the Principal

question 25

True/False

An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct costs of producing goods or services.

Cash Basis

An accounting method where revenue and expenses are recognized when cash is received or paid, rather than when earned or incurred.

External Reporting

The preparation and disclosure of financial statements and other information to parties outside the corporation, typically involving public companies.

Long-Term Assets

Assets that are expected to provide economic benefits beyond one year, including property, plant, equipment, and intangible assets.