If an Agent Makes Authorized Expenditures in the Course of Working

question 18

True/False

If an agent makes authorized expenditures in the course of working on behalf of the principal,the principal has a duty to reimburse the agent for the amount of money spent.This is known as the duty of subrogation.

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Definitions:

Restricted

Assets or funds that are reserved for a specific purpose and cannot be freely used for other expenses or investments.

Stock Split

The division of a company's existing stock into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an ownership interest in the company.