What Is the Liability of a Corporation, If an Agent

question 40

Multiple Choice

What is the liability of a corporation, if an agent of a company is acting within the scope of his employment, but the agent's act is illegal and contrary to his employer's instructions or against the corporation's policies?

• A)The corporation is not relieved of responsibility.
• B)The corporation is relieved of responsibility.
• C)The corporation never had responsibility.
• D)None of the above

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Definitions:

Adverse Opinion

An auditor's opinion indicating that a company's financial statements do not fairly represent its financial position, results of operations, or cash flows, often due to misstatements or non-compliance with accounting standards.

GAAP

GAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting practices and financial reporting in the United States.

Segment Reporting

The practice of dividing a company's financial reports into segments based on geographical areas, products, or services to provide insight into performance.

Reportable Segments

Sections of a business that have separate financial information available and are significant enough to warrant separate disclosure in the company's financial statements.