Question
Which of the following statements is correct? a.Apparent authority exists where aprincipal holds out or represents an agentashaving the necessary authorityand theoutsider relies on the
Which of the following statements is correct?
a.Apparent authority exists where aprincipal holds out or represents an agentashaving the necessary authorityand theoutsider relies on the principal's representationto enter into a transaction with the company.
b.Apparent authority exists when an agent holds himself out as having the necessary authority and the outsider relies on the agent's representation to enter into a transaction with the company.
c.Apparent authority exists when a principal expressly gives an agent authority to enter into a transaction with an outsider.
d.Apparent authority exists where a principal holds out or represents an agent as having the necessary authority and the outsider knows that the agent does not have authority but enters into the transaction anyway.
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood
2nd Edition
1948306441, 978-1948306447
