What Type of Principal Exists When His or Her Identity

question 62

Multiple Choice

What type of principal exists when his or her identity is not known and the third party is not aware that the agent is making an agreement on behalf of the principal?

• A)Identified principal
• B)Partially disclosed principal
• C)Undisclosed principal
• D)Disclosed principal
• E)Partially identified principal

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Definitions:

Machinery

Heavy and complex machines or equipment used in various industries for manufacturing, construction, or specific tasks requiring mechanical force.

Book Value

The value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its original cost.

Straight-line Method

A depreciation method that allocates an equal amount of the asset's cost to each year of its useful life.

Annual Rate

The rate of interest or growth a financial asset or liability would achieve over a period of one year.