Which of the Following Is True If There Is No

question 19

Multiple Choice

Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent?

• A) It will be assumed that the agent agreed to work for free on a gratuitous basis.
• B) The agent will be allowed to set the price which will be enforced unless it is unconscionable.
• C) The principal will be allowed to set the price which will be enforced unless it is unconscionable.
• D) The court will appoint a magistrate to set the price.
• E) Compensation will be calculated according to the customary fee in the situation.

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Definitions:

Company Tax Rate

The percentage of a company's taxable profits that it must pay to the government as tax.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Subsidiary Entity

A company that is controlled by another company, known as the parent company, through ownership of more than half of its voting stock.

Consolidation Adjustment

Adjustments made during the consolidation process to eliminate intercompany transactions and balances, ensuring financial statements present a single economic entity.