Which of the Following Is Correct with Respect to the Agency

question 190

Multiple Choice

Which of the following is correct with respect to the agency relationship?

• A) Agents are those who act on behalf of others but are not employees.
• B) The agency relationship must be created by contract.
• C) No agency can be created without the consent of the principal.
• D) For an agency contract to be valid, it must be in writing.
• E) An agency agreement in writing and under seal is called a power of attorney.

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Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of goods or services produced, including costs for labor and materials.

Net Cash Inflow

The difference between a company's cash inflows and outflows over a specific period, indicating net cash earned.

Net Cash Outflow

The result when the cash outgoings (expenses, payments) of a business exceed the incoming cash flow over a specific period of time.

Project

A temporary endeavor with a defined beginning and end, undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.