Estoppel Is the Concept That a Principal May Be Liable

question 31

True/False

Estoppel is the concept that a principal may be liable to a third party if that party justifiably believed that the agent had authority to act for the principal and there was a detrimental change in the third party's position.

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Definitions:

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends, typically expressed as a percentage.

Retained Earnings

Retained earnings refer to the cumulative amount of net income a company retains, rather than distributing it to shareholders as dividends.

Net Income

The remainder of a company's total revenue after deducting taxes, expenses, and any other costs.

Shareholders' Equity

The portion of the company's assets that belongs to the shareholders after all liabilities have been subtracted.