Apparent Authority Can Arise Where There Is an Undisclosed Principal

question 58

True/False

Apparent authority can arise where there is an undisclosed principal as well as where the principal is disclosed.

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Definitions:

Peripheral Activities

Secondary or non-core operations of a company that are not essential to its primary business functions.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and comparable.

Freight-out

The cost associated with transporting goods from the seller to the buyer, usually considered a selling expense.

Purchase Returns

Goods returned to the supplier from the buyer, often due to defects or other reasons for dissatisfaction.