Which of the Following Is True Regarding Agent Liability When

question 8

Multiple Choice

Which of the following is true regarding agent liability when a third party gets a judgment against a previously undisclosed principal?

• A) The agent is freed from liability to the third party.
• B) The agent remains liable to the third party.
• C) The agent is freed from liability to the third party unless the principal refuses to pay.
• D) The agent is freed from liability to the third party unless the principal files for bankruptcy.
• E) The agent is freed from liability to the third party unless a contract for personal service was involved.

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Definitions:

Incremental Sales

The additional revenue generated from a specific business action or decision, such as running a marketing campaign or launching a new product.

Cash Operating Expenses

Expenses that a company incurs during its day-to-day operations that require cash outflow.

After-Tax Discount Rate

The net discount rate that takes into account the tax implications affecting the net cost of investments or capital projects.

Working Capital

Working capital refers to the difference between a company's current assets and current liabilities. It is an indicator of a company's operational liquidity and short-term financial health.