Statements or Declarations of an Agent

question 36

Multiple Choice

Statements or declarations of an agent:

• A) will not bind the principal.
• B) will bind the principal if the statements were made by an agent while transacting business within the scope of agency authority.
• C) will not bind the principal if made after performance of the transaction concerned.
• D) none of the above.

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Definitions:

Saving

Saving refers to the portion of income not spent on current expenses and set aside for future use, often placed in accounts or investments that can accumulate interest over time.

Induced Consumption

The portion of consumption that changes as a result of changes in income, with higher incomes leading to increased consumption.

Autonomous Consumption

The amount of consumption that occurs regardless of current income levels, reflecting basic spending needed to survive.

Saving

The portion of income not spent on consumption but kept aside for future use, which may be invested to generate wealth.