Which of the Following Is Correct with Respect to an Agent's

question 72

Multiple Choice

Which of the following is correct with respect to an agent's performance of his or her duties?

• A)The agent must never compete with the principal.
• B)The agent must never take advantage of the third party.
• C)The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.
• D)When an agent fails to act in the best interest of the principal and is an independent contractor,this is just cause for constructive dismissal.
• E)The agent may profit at the expense of the principal if the agent acquires some previously unknown information.

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Definitions:

Incorporation Document

Official papers filed with a state to legally document the creation of a corporation.

Corporate Charter

A legal document establishing a corporation, outlining its structure, and defining its rights and duties.

Corporate Board

A group of individuals elected by shareholders to oversee and make decisions on behalf of a corporation.

S-corp

A special designation for a corporation in the United States that allows profits and losses to be passed through to shareholders to avoid double taxation on corporate income.