Where the Actions of a Person Convey the Impression to Third

question 10

Multiple Choice

Where the actions of a person convey the impression to third parties that he or she has given authority to a particular person to act as an agent

• A)the authority is real and of binding legal effect.
• B)a contract negotiated by such an agent may not be adopted by the principal at a later time.
• C)third parties may assume that the agent has authority to bind the principal until notice to the contrary has been given to the third parties.
• D)the agent may be liable to the principal for acting under implied but not actual authority.
• E)a,c,and d.

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Definitions:

Economic Depreciation

A decrease in the value of an asset due to changes in market conditions or technology, as opposed to physical wear and tear.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, effectively lowering the overall tax liability.

Tax Purposes

The reason or objective behind the implementation of taxes or certain tax guidelines, often related to income, business expenses, and investments.

Capital Gain

The profit earned from the sale of assets like stocks, bonds, or real estate, which exceeds the purchase price.