In a Fully Disclosed Agency, an Agent Is Not Liable

question 78

True/False

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

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Definitions:

Common Fixed Expenses

Overhead costs that are incurred regardless of the level of production or sales, shared by multiple products or departments.

Common Fixed Expenses

Fixed costs shared across different departments or product lines, such as rent or administrative salaries, not directly tied to any one aspect of business operations.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest expenses. It indicates the profitability from regular operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.