Which of the Following Statements Is TRUE? a Corporation Is

question 15

Multiple Choice

Which of the following statements is TRUE? A corporation is only bound in contract if the person acting on behalf of the corporation

• A)had actual authority.
• B)had actual authority and apparent authority.
• C)had actual authority or apparent authority.
• D)had apparent authority.
• E)had written authority from the corporation.

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Definitions:

Line Item

A specific and distinct item that appears on a statement or list, such as a financial report, indicating a single transaction or account component.

Financial Position

A snapshot of the assets, liabilities, and equity of a company at a particular point in time, providing insight into its financial health.

Associates Profit

The share of earnings derived from an associate company in which the parent company has significant influence but not total control.

Comprehensive Income

Represents the total change in equity for a period that is derived from both operating and non-operating activities, excluding any owner changes.