A Corporation Is Liable to a Third Person for the Act

question 12

Multiple Choice

A corporation is liable to a third person for the act of its agent: ______.

• A) to the same extent as a natural person would be liable.
• B) only if the agent was expressly authorized to perform the act.
• C) only if the agent's act was a crime.
• D) only if the agent's act was based on an intent to benefit the corporation.

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Definitions:

Unfriendly Takeover

An acquisition attempt by a company or individual that is not welcomed or approved by the target company's board of directors.

Horizontal Diversification

A strategy used by companies to increase their product lines or enter into new markets to reduce risk and increase growth opportunities.

Unprofitable Operations

Business activities that result in a net loss rather than generating profit for the company.