Julia Is an Agent Who Purchases Wool for Kara's Knitting

question 6

Multiple Choice

Julia is an agent who purchases wool for Kara's Knitting Company.In the course of her performance for Kara's Knitting Company,Julia pays for the gas for the company car and for some storage boxes for the wool.Kara's Knitting Company must reimburse Julia because of the principal's

• A)duty of performance.
• B)duty of loyalty.
• C)duty of compensation.
• D)duty of reimbursement.

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Definitions:

Lockbox Services

Banking services that process payments for companies by collecting and depositing checks into their accounts.

NPV

Net Present Value is a financial measure that computes the variance between the present value of cash inflows and outflows within a specific timeframe.

T-bills Yield

The return on investment for U.S. Treasury bills, being a measure of the interest income earned from holding these government securities.

Collect Funds

The process of gathering or accumulating money from different sources or transactions.