Which of the Following Is True of General Agents

question 6

Multiple Choice

Which of the following is true of general agents?

• A)They can alter the principal's legal relationships with third parties.
• B)They are appointed for business purposes but not personal purposes.
• C)They cannot appoint subagents to carry out the principal's business.
• D)They are also known as independent contractors.
• E)They have authority to act only in a specifically designated instance.

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Definitions:

Break-Even Point

The point at which total costs equal total revenue, meaning there is no profit or loss.

Total Sales

The aggregate revenue a company generates from selling goods or services within a specified period.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Margin Of Safety

The difference between actual or expected sales and the break-even point, indicating the level of risk in failing to cover fixed costs.