In the Absence of Some Specific Contractual Requirement, an Agency

question 15

Multiple Choice

In the absence of some specific contractual requirement, an agency arrangement may be terminated by

• A)the agent giving notice to the third parties it has contracted with for the principal
• B)the principal giving notice by newspaper advertisement that the agency relationship is over
• C)the principal and agent disagreeing about any issue whatsoever
• D)the performance of the agency becoming more difficult than first imagined
• E)the principal giving notice to the agent that the agency agreement is terminated

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Definitions:

Tax Purposes

The reason or context within financial and legal frameworks for which taxes are assessed, recorded, and paid, influencing financial decisions and reporting.

Existing Firm

A company or business that currently operates within a market, as opposed to new entrants or startups.

Functioning

Pertains to the operation or performance of a system, component, or organism, denoting how well it works or fulfills its intended purpose.

Make A Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.