Which of the Following Duties Does an Agent Owe to the Principal

question 54

Multiple Choice

Which of the following duties does an agent owe to the principal?

• A) reimbursement for expenses
• B) compensation
• C) indemnification
• D) loyalty

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Definitions:

Appropriated Retained Earnings

Appropriated retained earnings are portions of retained earnings that are set aside for specific purposes, such as future projects or debt repayment.

Retained Earnings

Retained Earnings represent a company's accumulated net income that is reinvested into the business or used to pay down debt, rather than distributed to shareholders as dividends.

Dividends

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Treasury Stock

Treasury Stock refers to shares that were once part of the outstanding shares of a company but were later reacquired by the company itself.