When an agent acts within the scope of the agent's authority, the principal is (A. not bound / B. bound) by the resulting contract.

Question 1 options:

not bound

bound

Question 2(1 point)

Amir was given verbal permission to buy a truck for his employer with a spending limit of $20,000. Amir's agreement to pay $21 000 for a truck (A. will / B. will not) be binding on his employer.

Question 2 options:

will

will not

Question 3(1 point)

Which of the following is an example of managing the risk related to agency?

Question 3 options:

encouraging the agent to hit sales targets

training the agent on authority limits

providing the agent with access to supplier contacts

Question 4(1 point)

What are the duties required of an agent?

Question 4 options:

reimburse the principal for out-of-pocket expenses

pay the principal for services rendered

abide by the terms of the agency agreement

Question 5(1 point)

Partners in a partnership are agents and (A. cannot / B. can) bind the partnership to contracts.

Question 5 options:

cannot

can

Question 6(1 point)

1-

The individual who permits another to act on his or her behalf is legally known as (A. an agent / B. a principal).

Question 6 options:

an agent

a principal