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:

Purpose

The reason for which something is done or created, or for which something exists; intent or objective.

Instrument

A legal document formalizing an agreement or right, such as contracts, wills, or deeds.

Conditional Order

Refers to an order in a legal or financial context that will only be executed if certain conditions are met.

Negotiable Instrument

A financial document, such as a check or promissory note, that contains a promise to pay a specific amount of money to the bearer or assignee, which can be transferred by endorsement or delivery.