Which of the Following Is True Regarding Criteria Needed for Creation

question 46

Multiple Choice

Which of the following is true regarding criteria needed for creation of the agency relationship?

• A) The agency must be created for a lawful purpose, and the person hiring an agent must have contractual capacity.
• B) The agency must be created for an equitable as well as a lawful purpose, and the person hiring an agent must have contractual capacity.
• C) The agency must be created for a business and lawful purpose, and the person hiring an agent must have contractual capacity.
• D) The agency must be created for a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.
• E) The agency must be created for an equitable as well as a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.

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Definitions:

Interest Dates

Specific dates on which interest payments are made by the issuer of a debt instrument to the holders.

Cash Paid

The total amount of money disbursed by a company to settle debts, purchase goods, or cover expenses, usually within a specific period.

Market Rate

The prevailing price or interest rate for goods, services, or securities in a free market.

Sale and Issuance

The process of selling securities to investors and recording the transaction in the company's financial statements.