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:

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.

Variable Factory Overhead

Variable factory overhead consists of production costs that vary with the level of output, such as utilities and indirect materials.

Fixed Costs

Costs that tend to remain the same in amount, regardless of variations in the level of activity.

Differential Revenue

The additional revenue generated from choosing one alternative over another in decision-making processes.