If a Principal Is Undisclosed, the Agent May Be Liable

question 17

True/False

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

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Definitions:

Risk Tolerance

An investor's capacity to endure market volatility and the possibility of losing money on investments.

Financial Security

An investment instrument issued by corporations, governments, or other entities that signifies ownership or a creditor relationship and promises payment of a financial obligation.

Risk-Averse Investors

Individuals who prefer to minimize their exposure to risk and are often willing to accept lower returns in exchange for greater certainty.

Risk-Neutral Investors

Investors who are indifferent to the risk of their investments, focusing solely on the expected returns without considering the variability of those returns.