-Refer to Exhibit 38-4

question 22

Multiple Choice

-Refer to Exhibit 38-4.If the closing price of Black Motor's stock on the previous day was $76.95,what value goes in blank (C) ?

• A) +1.95
• B) -1.95
• C) +0.95
• D) -0.95
• E) There is not enough information given to answer this question.

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Definitions:

Contractual Liability

Liability that arises from entering into a contract, where one party may be obligated to compensate another party for the failure to perform as specified in the contract.

Unidentified Principal

A party in a transaction whose identity is not known to the other party, often in agent-principal relationships.

Disclosed Principal

A disclosed principal is a party whose identity is known by all involved parties at the time a transaction is entered into with an agent.

Undisclosed Principal

is a party in a contractual agreement whose existence and identity are not revealed to the third party at the time of contract formation, often in agency relationships.