Which of the Following Is the Term Used to Describe

question 20

Multiple Choice

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

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

---

Definitions:

Total Liabilities

The total of all financial obligations a company owes to outside parties, including debts, accounts payable, and other obligations.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation that remains after deducting its liabilities.

Debt to Assets Ratio

A financial ratio indicating the proportion of a company's assets that are financed through debt.

Total Assets

The sum of all assets owned by a company, including cash, investments, property, and equipment.