Ingmar Asks Jessie to Contract with Jessie's High School Classmates

question 7

Multiple Choice

Ingmar asks Jessie to contract with Jessie's high school classmates to babysit Ingmar's new baby. Jessie orally agrees to do so. This is​

• A) ​an agency by agreement.
• B) ​an agency by estoppel.
• C) ​an agency by ratification.
• D) ​not an agency relationship.

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Definitions:

Minimum Bid

The lowest price that a seller is willing to accept for an item being sold at auction.

Net Working Capital

The variance between an organization's immediate assets and its short-term obligations, reflecting its short-term fiscal well-being.

Straight-Line Depreciation

A method of evenly distributing the cost of a tangible asset over its useful life, resulting in a fixed annual depreciation expense.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular project or investment.