Which of the Following Is a Correct Statement Relating to the Concept

question 8

Multiple Choice

Which of the following is a correct statement relating to the concept of mutual agency and the corporate form of business?

• A)There is no mutual agency with the corporate form of business.
• B)Mutual agency may or may not exist in a corporation,depending on the individual state law.
• C)Mutual agency always exists in the corporate form of business.
• D)Mutual agency may or may not exist in a corporation,depending on a vote by the shareholders.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.

Marginal Cost

The cost of producing one additional unit of a product or service.

Two-part Tariff

A pricing strategy that includes a fixed fee plus a variable charge based on usage or consumption of a product or service.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.