Operation of Law Provides Agents with the Authority to Act

question 29

Multiple Choice

Operation of law provides agents with the authority to act beyond the authority granted by the principal when:

• A) an agent has a good idea
• B) an agent has an opportunity to make a profit for the principal through his actions
• C) an agent understands all the risks
• D) the principal fails to make the right decision
• E) none of the other choices are correct

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Definitions:

Prospective Payment System

A healthcare payment method where the amount or rate of reimbursement is predetermined based on the diagnosis and/or procedures rather than basing it on the actual cost incurred.

Cost-Based Reimbursement

A payment method where healthcare providers are paid based on the costs of the services they deliver, often used by government programs.

Diagnosis-Related Groups

A system of classification for inpatient hospital services that groups patients into categories based on their diagnoses, surgical procedures, age, and other factors for the purpose of payment and analysis.

Psychiatric Ward

A specialized hospital unit dedicated to the treatment and care of individuals with acute psychiatric conditions, offering a range of therapeutic and support services.