A Principal Is _____ If, When an Agent and a Third

question 54

Multiple Choice

A principal is _____ if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal but it does not know the principal's identity.

• A) disclosed
• B) partially disclosed
• C) undisclosed
• D) visible

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Definitions:

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Gross Method

An accounting practice where purchases are recorded at their gross price, without deducting any discounts, which are recorded if and when they are received.

Exchange Rates

The rate at which one currency can be exchanged for another currency, influencing international trade and finance.

Settlement Date

The date on which a trade or transaction must be finalized, with the buyer delivering payment and the seller transferring ownership of the asset.