Kris Is an Administrative Assistant with Little Financial Corporation, but Has

question 44

Essay

Kris is an administrative assistant with Little Financial Corporation, but has no authority to sign Little Financial checks. Kris orders merchandise from My-T-Fine Retail Company delivered to her home and pays with an Little Financial check, signing "Little Financial Corp. by Kris, admin. assist." My-T-Fine does not know that Kris has no authority to sign the check. Who is liable on the check, and why?

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Definitions:

Excess Profit

Profit earned by a firm that exceeds the normal profit level, often due to monopolistic power or market inefficiencies.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar, but not identical, allowing for competition on factors other than price.

Marginal Revenue

The additional income received from selling one more unit of a good or service.