Which of the Following Statements Is True with Regard to an Agent's

question 46

Multiple Choice

Which of the following statements is true with regard to an agent's duties?

• A)A real estate agent may buy property from a third party if it is at a good price and then sell the property to his principal at a higher price.
• B)An agent must always scrupulously account for money coming into his hands on behalf of his principal.
• C)An agent need not disclose all relevant information to the principal.
• D)An agent is not entitled to the agreed-upon commission and reasonable expenses undertaken on behalf of his principal in carrying out his duties.
• E)An agent cannot act for two principals even with the knowledge and consent of those principals.

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Definitions:

MCC

Marginal Cost of Capital is an economic term representing the cost of obtaining one additional unit of capital.

Financial Risk

The variation in a firm’s financial performance caused by using borrowed money (debt, leverage).

Capital Structure

The mix of various forms of financing used by a firm to fund its operations, such as equity, debt, and hybrid instruments.

Capital Budgeting

The process of planning and evaluating investments in assets and projects with long-term implications for a company's financial health.