Which of the Following Is Correct with Respect to an Agent's

question 106

Multiple Choice

Which of the following is correct with respect to an agent's performance of his duties?

• A)The agent must never compete with the principal.
• B)The agent must never take advantage of the third party.
• C)The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.
• D)When an agent fails to act in the best interest of the principal and is an independent contractor, this is just cause for constructive dismissal.
• E)The agent may profit at the expense of the principal if the agent acquires some previously unknown information.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs.

Variable Costs

Variable costs are expenses that change in proportion to the activity or production level of a business.