An Agent Who Is Aware That the Principal Does Not

question 66

True/False

An agent who is aware that the principal does not properly exist under the law,but continues to act in their name is personal liable to all third party individuals for transactions that occur.

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Definitions:

Monthly Cash Expenses

The total amount of money spent by a business within a month for operational activities, excluding non-cash expenses.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value due to changes in interest rates.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow from operations.