Which of the Following Is True with Respect to the Agency

question 89

Multiple Choice

Which of the following is true with respect to the agency relationship?

• A)An agent acting gratuitously can never bind the principal.
• B)When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
• C)Actual authority is the authority the principal has implied in conversations with a third party.
• D)An agent's authority is limited to whatever authority the principal specifically gives the agent.
• E)An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.

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Definitions:

Profit-Maximizing

A process or strategy aimed at achieving the highest possible profit within a given business context.

Monopolistic Competition

A market structure characterized by many firms selling differentiated products, with few barriers to entry and some degree of market power.

Economic Profit

The differential between total receipts and overall disbursements, accounting for both direct and indirect expenditures.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation as well as price.