Fact Pattern Ulani Indicates That She Is Acting as an Agent on an Agent

question 17

Multiple Choice

Fact Pattern
Ulani indicates that she is acting as an agent on behalf of an unnamed client-Thoroughbred Stallions,LLC-when she enters into a contract with Shana.
-Refer to Fact Pattern 20-1A.Thoroughbred Stallions is

• A)a disclosed principal.
• B)a non-existent principal.
• C)an undisclosed principal.
• D)an unidentified principal.

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Definitions:

Hurdle Rate

The minimum acceptable rate of return on an investment, used as a benchmark to assess its financial viability.

Borrowed Funds

Money obtained through loans or debt financing, which needs to be repaid over time, usually with interest.

Capital Budgeting

The process of planning and managing a company's long-term investments in major projects or assets.

Internal Rate

Generally refers to the internal rate of return (IRR), which is a metric used in capital budgeting to estimate the profitability of potential investments.