Following the Bursting of the Housing Bubble in 2005,KB Homes

question 50

Multiple Choice

Following the bursting of the housing bubble in 2005,KB Homes sold ________ new homes and its stock price ________ dramatically.The result was total losses of $2.4 billion between 2007 and 2010.

• A)fewer; rose
• B)fewer; fell
• C)more; rose
• D)more; fell

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Definitions:

Agent

A person or entity authorized to act on behalf of another, usually in a business or legal capacity, to create a legal relationship with a third party.

Agency Relationship

A legal arrangement where one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Undisclosed Principal

A person who is represented by an agent in a transaction but whose identity is not revealed to the third party involved in the transaction.

Breached Contract

A situation where one or more parties to a contract fail to fulfill their obligations as specified in the agreement.