An Agent Who Accepts a Bribe to Purchase Goods for a Principal

question 84

Multiple Choice

An agent who accepts a bribe to purchase goods for a principal from a seller who is a personal friend breaches his ________ duty by taking the money,since it is the agent's duty to work only for the best interests of the principal.

• A)fiduciary
• B)statutory
• C)indemnity
• D)gratuitous

Understand the use of sensitivity analysis in assessing different business scenarios.

Recognize the impact of sales mix on break-even analysis for companies selling multiple products.

Understand the concept of break-even point and its significance in cost-volume-profit (CVP) analysis.

Analyze and interpret the sales mix and its impact on company performance.

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Definitions:

Return on Equity

An indicator of a company's financial performance, indicating the amount of profit generated from the investments made by its shareholders.

Gross Profit Percentage

A financial metric that shows the portion of sales revenue that exceeds the cost of goods sold (COGS), expressed as a percentage of total sales revenue.

Net Profit Margin

A profitability ratio that measures the percentage of net income generated from total revenue, indicating the efficiency of a company in managing its operations and expenses.

Principal

The original amount of a debt or investment on which interest is calculated.