________ Arises When the Principal's Manifestations Cause a Third Party

question 34

Multiple Choice

________ arises when the principal's manifestations cause a third party to form a reasonable belief that the agent is authorized to act in a certain way.

• A)Contractual authority
• B)Incidental authority
• C)Apparent authority
• D)Actual authority

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Definitions:

Milton Friedman

An American economist known for his strong belief in free-market capitalism and for being a leading proponent of the efficiency of markets and the reduction of government intervention.

Social Obligation

The responsibility or duty of an individual or organization to act in the best interests of society at large, often beyond legal requirements.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a financial interest in the company's performance.

Legal Acts

Actions that are authorized, performed, or recognized by law or legislation and have legal effect or consequences.