If Matt Is an Agent for Art,which of the Following

question 118

Multiple Choice

If Matt is an agent for Art,which of the following is false?

• A)Matt cannot act as an agent for Art and for the person Art is dealing with at the same time without the permission of both.
• B)Matt owes a fiduciary duty to Art.
• C)Matt could act as an agent for Art even if he were not paid to do so.
• D)Even when Matt is acting as an agent,he need not put the interest of Art above his own.
• E)Matt must use reasonable care,skill,and diligence in his service to Art.

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Definitions:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.

Outstanding Stock

The stock in the hands of stockholders.

Cost Method

An accounting approach for valuing certain assets and investments at their original purchase cost, with adjustments for depreciation or impairment.

Stock Investments

Financial assets representing ownership in a corporation, giving the holder a share of the corporation's earnings and assets.