Use the Following to Answer Questions

question 22

Multiple Choice

Use the following to answer questions
Figure: Budget Lines for Tea and Scones
-(Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones. For months now, Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of both a cup of tea and a scone increase to $2?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit and loss distribution among partners in a business partnership.

Vicarious Liability

A legal principle under which a party can be held liable for the wrongful actions of another party, even if the first party did not commit the act themselves.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing the other's money or property, often found in trustee-beneficiary relationships.

Duty Of Loyalty

An agent must subordinate his personal concerns by (1) avoiding conflicts of interest with the principal and (2) not disclosing confidential information received from the principal.