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The accounts receivable policy is generally set by the:
Duty of Loyalty
A legal and ethical obligation requiring individuals, particularly directors and officers of a corporation, to act in the best interests of the corporation and its shareholders.
Nature of Agency
Refers to the relationship established when one party, the agent, is authorized to act on behalf of another, the principal, in dealing with third parties.
Agency Coupled
A legal arrangement where an agent has an irrevocable authority primarily for the agent's benefit, based on an interest in the subject matter of the agency.
Liable
Legally responsible or obligated to provide compensation for harm, loss, or damage caused.
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