Under Which of the Following Does a Principal Give Authority

question 96

Multiple Choice

Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?

• A)A general power of attorney
• B)A specific power of attorney
• C)A localized power of attorney
• D)A durable power of attorney
• E)An equitable power or attorney

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Definitions:

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.

Unsystematic Risk

The risk that is unique to a specific company or industry, which can be mitigated through diversification.