Which of the Following Is True with Respect to the Agency

question 15

Multiple Choice

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

• A) An agent acting gratuitously can never bind the principal.
• B) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.
• C) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
• D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
• E) Actual authority is the authority the principal has implied in conversations with a third party.

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Definitions:

Governments

Organizational structures with the authority to govern a community, state, or nation, implementing laws, and managing public resources and services.

Tight Control

The rigorous management or governance of operations, activities, or systems to ensure efficiency, compliance, or quality.

Resource Prices

The cost associated with acquiring the natural, human, and capital resources needed for production.

Overall Trend

The general direction in which something is developing or changing over a period.