Agency Relationships Arise in Which of the Following Circumstances

question 34

Multiple Choice

Agency relationships arise in which of the following circumstances?

• A)Each partner is an agent of the partnership.
• B)Directors, officers, and employees of a corporation can be agents of the corporation for particular purposes.
• C)Agency can only be created by express contract.
• D)Agency can be created only by the principal telling someone that another person is their agent.
• E)Agency can be created by actual authority or apparent authority.

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Definitions:

Income Rises

An increase in the amount of money earned by an individual or household, which can affect consumption patterns and demand for goods and services.

Engel Curve

An Engel curve depicts the relationship between an individual's income and the quantity of a good purchased, illustrating how spending on the good varies with changes in income.

Demand Curve

graphically represents the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.