The Term Apparent Authority Is Used When There Is: ______

question 9

Multiple Choice

The term apparent authority is used when there is: ______.

• A) no interaction between the principal and third persons.
• B) actual authority.
• C) only the appearance of authority and that appearance of authority was created by the principal.
• D) only the appearance of authority and that appearance of authority was created by the agent.

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Definitions:

Command Economies

Economic systems where the government or central authority controls all major aspects of production and distribution of goods and services.

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, noted for its centralized economy and autocratic government.

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.

Production

The act of creating goods or services using labor, equipment, and natural resources.