When agents make advances from their own funds in conducting the principal's business, the principal has:
A. a duty to reimburse the agent for expenses incurred for the principal.
B. a duty to reimburse the agent even if the agent is not acting within the scope of his/her authority.
C. no duty to reimburse the agent because the agent commingled fungible goods.
D. no duty to reimburse the agent because the agent has assumed the burden.
Answer: A
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In In re Jones, Jones graduated from college and then went to law school. He graduated from law school but was unable to pass the bar exam. Over the next decade he worked various jobs before going back to school again for a master's. Jones took out student loans to pay for his education, resulting in $140,000 of debt. He filed for bankruptcy and sought to have the student loans discharged for "undue hardship." Which of the following is the most likely holding of the court?
A. Jones had not met the undue hardship standard because he was well educated and able to work and presented no hardship such as illness or injury. B. Jones met the undue hardship standard because he demonstrated that he had made diligent efforts to find employment. C. Student loans are nondischargeable and not subject to the undue hardship standard. D. Jones met the undue hardship standard because the amount of money owed was too much for a person in his fifties to be able to pay.
Which of the following is not true about a 35 percent stock dividend?
a. The market value of the stock is needed to record the stock dividend. b. Retained earnings decreases. c. Contributed capital increases. d. Par value per share remains the same.
What is the entry to record depreciation charges up to the date of sale for Chen Company?
a. Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 b. Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 c. Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 d. Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 e. Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Answer the following statements true (T) or false (F)
1. Claim letters should detail both the problem and the actions required for satisfaction. 2. Positive responses to claims never need explanation. 3. An indirect approach in responses to inquiries should have reasons for denying the request followed by the refusal. 4. Most claim refusal letters should close with an apology.