Identify the True Statement Concerning the Law of Principal and Agent

question 191

Multiple Choice

Identify the true statement concerning the law of principal and agent.

• A) Agency is only created by way of a contract.
• B) The principal and his agent owe each other the same duties.
• C) An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal.
• D) An agent with no express authority can never bind his principal into a contract with a third party.
• E) An agent can never be liable to the third party himself while the principal will bear no such liability.

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Definitions:

Capacity Analysis

Calculating the production capacity an organization needs to fulfill the dynamic demands for its products.

Time-Driven

A method or approach that bases calculations, actions, or operations on the passage of time, often used in costing and scheduling.

Activity-Based Costing

A costing method that allocates overhead costs based on each product's activities or consumption rather than a standard rate.

Capacity Analysis

The act of determining the amount of production capability needed by an organization to meet its products' shifting demands.