An Undisclosed Principal May Result in Which of the Following

question 24

Multiple Choice

An undisclosed principal may result in which of the following?

• A)Liability of the agent for any contract made on behalf of such a principal.
• B)The agent's being declared incompetent by a court of law.
• C)A declaration order by the court for the principal to show a guarantee.
• D)All of the above.

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Definitions:

Required Return

The minimum expected return by investors for assuming the risk of investing in a particular asset or project.

Constant

In finance, this often refers to a fixed value or number that does not change over time in formulas or calculations.

Growth Opportunities

Potential scenarios or projects that might result in an increase of value or expansion for a business.

Earnings Per Share

A financial metric that divides a company's profit available to shareholders by the outstanding shares, indicating the profitability on a per-share basis.