Which of the Following Results in Termination of Agency by Operation

question 80

Multiple Choice

Which of the following results in termination of agency by operation of law?

• A) Death of either the principal or the agent.
• B) Adjudicated insanity of the principal or agent.
• C) Insolvency.
• D) Death of either the principal or the agent, adjudicated insanity of the principal or agent, and insolvency.
• E) Death or adjudicated insanity of either the principal or agent, but not insolvency.

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Definitions:

Sole Proprietorships

A business structure where a single individual owns and operates the business, taking on the responsibilities and benefits of the business.

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Corporations

Corporations are legal entities that are separate from their owners, allowing them to own assets, incur liabilities, and conduct business activities.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability and the ability to raise capital through stock.