An Agent Cannot Bind the Principal in a Contract with a Third

question 154

True/False

An agent cannot bind the principal in a contract with a third party unless there is an agency contract between the principal and the agent.

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Definitions:

Inventory Period

The duration of time goods remain in inventory before being sold.

Accounts Receivable Period

The accounts receivable period is the average time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Cash Cycle

This term describes the time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Source Of Cash

The origin of funds that a company or individual has, which could be operational earnings, investment returns, or financing.