To obtain a sample of 10 books in the store, the manager walked to the first shelf next to the cash register to pick the first 10 books on that shelf. This is an example of a

Alice Able, on behalf of Pix Corp., entered into a contract with Sky Corp. by which Sky agreed to sell computer equipment to Pix. Able disclosed to Sky that she was acting on behalf of Pix. However, Able had exceeded her actual authority by entering into the contract with Sky. If Pix does not want to honor the contract, it will nonetheless be held liable if Sky can prove that

A. Able had apparent authority to bind Pix. B. Able believed she was acting within the scope of her authority. C. Able was an employee of Pix and not an independent contractor. D. The agency relationship between Pix and Able was formalized in a signed writing.

Understanding the theory of purchasing power parity is important because deviations from PPP significantly affect the

A) operations of the central bank. B) hedging activities of multinational firms. C) profitability of multinational firms. D) arbitrage opportunities in the banking markets.