For a Ratification to Be Effective,the Principal

question 69

Multiple Choice

For a ratification to be effective,the principal:

• A)must have knowledge of all material facts concerning the transaction.
• B)must communicate her intent to ratify to the third party.
• C)must have been in existence when the act was done.
• D)Both (a) and (c) are correct.

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Definitions:

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, and free entry and exit, leading to price takers on both sides.

ATC Curve

A graph that shows the average total cost of producing different quantities of a good or service, calculated by dividing the total cost by the quantity produced.

Positive Economic Profit

The excess amount by which total revenue surpasses the total costs, including opportunity costs of production.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.