Which of the Following Is True Regarding the Status of an Agent

question 62

Multiple Choice

Which of the following is true regarding the status of an agent as a fiduciary?

• A) Although the principal is a fiduciary, an agent is not a fiduciary.
• B) An agent is only a fiduciary if the principal and agent agreed by written contract that the agent would be a fiduciary.
• C) An agent is only a fiduciary if the principal and agent agreed by written or oral contract that the agent would be a fiduciary.
• D) An agent is only a fiduciary to the principal if a transaction in excess of $10,000 is involved.
• E) An agent is a fiduciary to the principal.

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Definitions:

Production Budget

An estimate of the total units that must be produced in a given period to meet sales and inventory needs.

Sales Budget

An estimate of the expected sales revenue and selling expenses for a specific period, used for planning and control purposes.

Sales Budget

An estimate of the total sales revenue a company expects to earn over a specific period, often used for planning and control purposes.

Sales

The revenue earned from selling goods or services to customers.