Which of the Following Is the Term Used to Describe

question 1

Multiple Choice

Which of the following is the term used to describe the duty an agent has to perform responsibilities of the principal as specified in the agency agreement?

• A) Duty of action
• B) Duty of contract
• C) Express duty of action
• D) Duty of performance
• E) Duty of obedience

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Definitions:

Account

A record or statement of financial expenditure and receipts relating to a particular period or purpose or the contractual arrangement under which an entity manages the funds of another.

Collection Float

The delay between when a check is deposited into a bank account and when the funds are available to the depositor, affecting cash flow.

Cheques

Cheques are financial instruments that order a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

Deposit

Money placed in a financial institution for safekeeping, which can earn interest and is often used to secure transactions.