If You Hire Gnowsky to Act as Your Agent, Which

question 6

Multiple Choice

If you hire Gnowsky to act as your agent, which of the following is true with regard to the duties he owes to you?

• A)Gnowsky need not tell you everything relevant to his task that a reasonable person would consider might affect your decision making.
• B)Gnowsky need not use reasonable care, skill, and diligence in his service to you.
• C)An agent may delegate his authority without the authorization of his principal.
• D)Even when Gnowsky is acting as your agent, he need not put your interest above his own.
• E)Gnowsky's failure to obey you and to act within the authority given him would allow you to sue him for breach of contract.

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Definitions:

Discount Rate

Discount rate is the interest rate used to determine the present value of future cash flows, essential in evaluating investment opportunities and financial decisions.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of investments.

Discount Factor(s)

A multiplicative factor used to calculate the present value of future cash flows by accounting for the time value of money.

Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows.