Apparent Authority May Be Based on Which of the Following

question 54

Multiple Choice

Apparent authority may be based on which of the following?

• A) Only words of the principal or acts of the principal
• B) Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time
• C) Words of the principal,acts of the principal,or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time
• D) Express contractual authority only

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Definitions:

Cash Flow Stream

A series of cash inflows and outflows over a period, representing transactions or operations' financial impacts on a business.

Compounded Annually

The process by which an investment grows in value over time as interest is added to the principal amount each year, which then earns more interest.

Rate of Interest

The percentage of a loan accrued as interest to the borrower, commonly shown as an annual percent of the remaining loan balance.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, offering benefits like savings, investment, and tax advantages.