Which of the Following Is Not a Breach of an Agent's

question 44

Multiple Choice

Which of the following is not a breach of an agent's duty of obedience?

• A) Entering into an unauthorized contract for which his or her principal is then liable.
• B) Committing a tort for which the principal is now liable.
• C) Improperly delegating her authority.
• D) Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how quickly a company collects on its accounts receivable.

Financial Statements

Papers that give a summary of a corporation's financial status, featuring the balance sheet, income statement, and statement of cash flows.

Service Fee

A charge imposed for the provision of a service, often additional to the regular cost of goods or services sold.

Perpetual Inventory System

An accounting method that continuously tracks inventory levels by adjusting them with each sale or purchase transaction.