Which of the Following Is True of General Agents and Special

question 80

Multiple Choice

Which of the following is true of general agents and special agents?

• A)General agents have the power to bind the principal by their actions,while special agents do not.
• B)A general agent is employed to conduct a series of transactions,while a special agent is employed to conduct a small,simple group of transactions.
• C)Special agents are gratuitous agents,i.e. ,they are not paid by the principal,while general agents receive consideration for their services.
• D)General agents can appoint subagents to carry out the principal's tasks,while special agents cannot.

---

Definitions:

Net Income

The remaining profit for a company after removing taxes and expenses from its total income.

Common Stock

Equity shares issued by a corporation, representing ownership interests and voting rights in the company.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the company's assets.

Note Payable

A documented commitment to repay a certain sum of money along with interest at an agreed-upon date in the future.