An Agent Can Limit the Liability for the Acts of a Subagent

question 13

Multiple Choice

An agent can limit the liability for the acts of a subagent to the principal by _____.

• A) issuing express authority
• B) using a ministerial clause
• C) issuing implied authority
• D) using an exculpatory clause

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Definitions:

Amortized

The process of gradually reducing the cost or value of an asset, or the repayment of a debt over a period of time, through regular payments.

Patents

Patents are government grants that give inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention for a certain period.

Capital Expenditure

Resources utilized by a business to purchase, improve, and upkeep tangible assets like real estate, factories, or machinery.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company’s balance sheet.