How Does Agency Law Stimulate Business Activity

question 62

Multiple Choice

How does agency law stimulate business activity?

• A)By binding principals to contracts to create certainty
• B)By holding principals accountable for agent actions,protecting consumers
• C)By letting principals contract through agents,multiplying their dealings
• D)By restricting the liability of principal's for the actions of agents

Understand the different functions and types of control within organizations.

Recognize the role of objectives in measuring actual performance.

Distinguish between preventive maintenance and concurrent control.

Appreciate the significance of long-range planning and financial projections.

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Definitions:

Self Competency

The awareness and development of one's own skills and abilities to perform tasks effectively.

Predictable Situations

Refers to scenarios or environments where outcomes and events occur in a manner that can be anticipated based on past experiences or known patterns.

Diagnose Organizational Problems

The ability to identify and analyze issues within an organization that hinder its effectiveness, in order to propose suitable solutions.

Organizational Diagnosis

The process of assessing an organization's current level of functioning to identify strengths and areas for improvement.