All Organizations Perform Three Basic Business Activities

question 54

Essay

All organizations perform three basic business activities.List and describe these activities.

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Definitions:

Agency Relationship

A legal arrangement in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Bind

To legally obligate oneself or another party to an agreement or contract.

Principal

The main party to a transaction or contract, or the amount of money on which interest is paid or received.

Ratify

The official approval or confirmation of a treaty, contract, or agreement, making it valid and binding.