A . Explain how an agency relationship comes to an end. b. Is an agency relationship ever irrevocable? Explain
a . Agency is terminated by: (1) acts of the parties (time lapse, purpose achieved, an agent's renunciation of authority, mutual agreement to terminate, a principal's revocation of authority); or (2) operation of law (death of the agent or death of the principal upon notice to the agent, incapacity of the principal upon notice to the agent, changed circumstances). Termination of agency means the agent no longer has the actual authority to bind the principal.
b. Yes, some states recognize an agency coupled with an interest, which is irrevocable. The reason is that interest is not created for the benefit of the principal. It occurs when the agent has a security interest in the subject matter of the agency.
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The installment sale method can be used for all of the following transactions except
A. the sale of a painting by an art collector. B. the sale of an individual's personal car. C. the sale of a sole proprietor's office building. D. the sale of a yacht by a shipbuilder.
A profitable customer yields a ________
A) cost stream that exceeds by an acceptable amount his revenue stream B) revenue stream that exceeds the company's cost stream C) cost stream that exceeds the company's revenue stream D) revenue stream that exceeds by an acceptable amount his cost stream E) revenue stream that equals the company's cost stream
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Answer the following statement true (T) or false (F)
A company with a current ratio of 2.4 times will see that ratio decrease when the company
a. pays a large current liability. b. declares a 10 percent stock dividend on its common stock. c. borrows cash by issuing a short-term note payable. d. converts a short-term liability to a long-term liability.