Which of the Following Statements Is True for a Principal's

question 17

Multiple Choice

Which of the following statements is true for a principal's liability for notice and payments to the agent?

• A)The agent is not bound to inform the principal of knowledge the agent gains in the course of his or her responsibilities.
• B)Payment to the agent of a debt owed to the principal discharges the debt if the agent has authority to receive such payments.
• C)An agent who makes over-the-counter sales is viewed as having express authority to collect for the goods.
• D)The principal is bound by the information that is passed on by the agent if it relates to the scope of the agent's responsibilities and authority.

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Definitions:

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Annual Interest Rate

The percentage of a sum of money charged for its use, calculated on an annual basis.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, hence, eroding purchasing power.

Real Rate of Return

The rate of return on an investment after adjusting for inflation, showing the actual increase in purchasing power.