Which of the Following Is a Course of Action for a Principal

question 76

Multiple Choice

Which of the following is a course of action for a principal if an agent is found competing with him or her?

• A) The principal can recover damages from the agent if the competition continues after the agency has ended.
• B) The principal can recover profits made by the agent.
• C) The principal is given an option of buying the agent's competing venture.
• D) The principal is not allowed to recover for lost sales due to the agent's competing venture.

Understand the impact of financing decisions on financial leverage and solvency.

Comprehend the concept and calculation of turnover ratios and their impact on business efficiency.

Understand the role of financial management in optimizing business operations.

Grasp the significance of key financial ratios in evaluating long-term solvency and operational efficiency.

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Definitions:

Shale

A fine-grained sedimentary rock composed of mud that splits easily into layers, often used in the production of oil and natural gas.

Sandstone

A sedimentary rock consisting of sand-sized minerals or rock grains, compacted and often cemented together over time.

Limestone

A sedimentary rock composed primarily of calcium carbonate, often formed from marine organisms' shells and skeletons.

Granite

A rough-textured igneous rock that predominantly contains quartz, feldspar, and mica, frequently used in the construction industry.