Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece. Ames bought a 19th-century French desk for $3,000 from Carter. Baker was furious when she saw the desk, and she
fired Ames. Nevertheless, she put the desk on display in the shop with a $5,000 price tag. When the best offer she got for the desk was $2,500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk. Will Carter have to do so?
?No. By displaying the desk and making it available for sale with knowledge of Ames' unauthorized act in purchasing it, Baker ratified Ames' act.
You might also like to view...
Explain the function of a gatekeeper.
What will be an ideal response?
The performance reports of ________ contain actual and budgeted information on both their revenues and costs.
A) profit centers B) cost centers C) revenue center D) KPI centers
The integrated marketing concept ties together all of the company's messages and images
Indicate whether the statement is true or false
Assets created by selling goods and services on credit are:
A. Expenses. B. Accounts receivable. C. Equity. D. Liabilities. E. Accounts payable.