In Order for an Authorized Agent or Representative to Avoid Personal

question 14

Multiple Choice

In order for an authorized agent or representative to avoid personal liability,he should:

• A)orally inform the other party that he is merely an agent.
• B)inform his principal of the exact terms of the agreement.
• C)indicate clearly that he is signing as a representative of someone else.
• D)never sign an instrument on behalf of his principal.

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Definitions:

Compound Interest Table

A table that shows the amount of compound interest that will be accrued on a principal amount over a period of time at various interest rates.

Salvage Value

The expected end-of-life value of an asset after its useful period has ended.

Acceptable Earnings Rate

The minimum rate of return on investment that a company or investor is willing to accept, considering the risk and opportunity cost of the investment.

Useful Life

The estimated period over which a fixed asset is expected to be usable by the business, impacting depreciation calculations.