The Duties of a Principal to an Agent Do Not

question 296

Multiple Choice

The duties of a principal to an agent do not include:

• A) cooperating with the agent
• B) allowing the agent "significant discretion"
• C) reimbursing the agent for any reasonable expense
• D) indemnifying the agent for legal liability incurred in completing the purpose of the agency
• E) all of the other choices are required

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Definitions:

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares and amounts over par value.

Stock Dividend

A dividend payment to shareholders in the form of additional shares in the company, rather than cash.

Cash Dividend

A disbursement by a company to its shareholders, often from the profits earned.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in proportion to their existing holdings, instead of paying a cash dividend.