An Authorized Agent Binds a Principal on an Instrument If

question 36

True/False

An authorized agent binds a principal on an instrument if the agent clearly names the principal in the signature.

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Definitions:

Acquisition Transaction

A financial deal or agreement in which one company takes control of another company, either through a direct purchase of its shares or assets.

Fair Values

The plural form indicating multiple instances or assessments of the market values of assets or liabilities at a given time.

Credit Balance

Represents a situation where the amount of credits in an account exceeds the debits, often indicating the amount owed to the account holder or available for future use.

Consolidated Retained Earnings

The collective earnings retained by a group of companies after dividends are paid, reported on a consolidated financial statement.