Discuss an agent's duty to communicate information to the principal. When is this duty considered to be violated?
What will be an ideal response?
The agent has a duty to inform the principal of knowledge the agent gains in the course of her responsibilities. This duty will be violated if the agent does not promptly notify the principal of anything of relevance to the agency that she knows or should know are of concern to the principal.
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Samos, Inc purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at
A) present value of a $75,000 annuity for three years discounted at the bank prime interest rate. B) $225,000. C) present value of a $75,000 annuity for three years discounted at the market interest rate. D) $225,000 plus imputed interest.
The segment margin of a profit or investment center does not include allocated common cost
Indicate whether the statement is true or false
A minimum checking account balance that a firm must maintain with a bank to help offset the costs and services such as check clearing and cash management advice is called a _____ balance.?
A. ?transactions B. ?compensating C. ?precautionary D. ?speculative E. ?convertible
All of the following are potential advantages of retention EXCEPT
A) lower expenses. B) increased cash flow. C) encouragement of loss prevention. D) protection from catastrophic losses.