Which of the Following Results in Liability of the Principal

question 50

Multiple Choice

Which of the following results in liability of the principal because the principal approved of an unauthorized agent's signature?

• A)Ratification
• B)Authorization
• C)Acknowledgement
• D)Rescission
• E)Accord and satisfaction

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Trading Investment

Securities bought and held primarily for selling in the near term to generate income on short-term price differences.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation or amortization.

Investment Account

A financial account held at a financial institution that is used for the purpose of holding and managing investments such as stocks, bonds, mutual funds, and other assets.