An Intermediate Market Is Perfect When

question 125

Multiple Choice

An intermediate market is perfect when:

• A) there are no quality differences between inside and outside suppliers.
• B) there are quality differences between inside and outside customers.
• C) buyers and sellers can sell any quantity without affecting the market price.
• D) buyers and sellers are motivated to make decisions that are consistent with those of the organization.

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Definitions:

Previously Undisclosed Principal

A principal whose identity was not revealed by the agent at the time of entering into a contract with a third party.

Third Party

An entity that is not directly involved in a transaction or contract but may be affected by it or may have interests that are affected.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.

Agency Termination

The act of ending the relationship between an agent and their principal, which can occur for various reasons including mutual agreement, achievement of the agency's purpose, or breach of contract.