Donald Is an Agent Representing Xmart,a Large Department Store Chain

question 5

Essay

Donald is an agent representing Xmart,a large department store chain.Xmart has sent him to deal with Fred in regard to purchasing Fred's land in order to erect a new store.When Donald first meets Fred,Fred calls Xmart to verify that Donald is in fact an agent authorized to deal on Xmart's behalf.Xmart sends Fred a written confirmation of Donald's authorization to act as its agent and states that a contract signed by Donald will be honored by Xmart.Donald and Fred meet every other day during the negotiations.While the negotiations are still ongoing,Donald is fired by Xmart because it doesn't feel that he is making sufficient progress.Why is it important for Xmart to communicate with Fred regarding Donald's firing?

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Definitions:

Return on Assets Ratio

A financial metric used to evaluate a company's profitability relative to its total assets.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Treasury Shares

Treasury shares are previously issued shares that have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Market Price

The current price at which an asset or service can be bought or sold in an open and competitive market.