Which of the Following Is True of a Fully Disclosed

question 47

Multiple Choice

Which of the following is true of a fully disclosed agency?

• A) The third party does not know the identity of the principal.
• B) The third party knows the name of the principal, but all transactions are done with the agent.
• C) The contract is between the principal, agent, and the third party.
• D) The principal is liable on the contract with a third party.

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Definitions:

Net Operating Income

The profit generated from a company's operational activities, excluding expenses and revenues that are not related to the core business operations.

Percentage Change

A mathematical calculation that indicates the degree of change over time, representing the difference between an old and new value as a percentage of the old value.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific segment of a business and would disappear if the segment did not exist.

Net Operating Income

The profit generated from a company's normal business operations, excluding income from investments and other secondary sources.