A Principal May Ratify an Action Taken by an Agent

question 27

True/False

A principal may ratify an action taken by an agent that the principal would not have been capable of authorizing at the time that the action was taken.

---

Definitions:

CVP Model

The Cost-Volume-Profit model, a financial analysis tool used to determine the effects of varying levels of cost and volume on a company's profits.

Total Revenue Function

A mathematical formula that represents the total income of a company from its sales of goods or services, typically as a function of price and quantity.

Total Cost Function

A mathematical expression that represents the total cost of production, combining fixed and variable costs, as a function of output level.

Profit Maximisation

The process of adjusting the production and sale of goods and services to achieve the highest possible profit levels, considering constraints and market conditions.