In U.S. government contracting firms, errors in accounting for costs can then lead to overcharging the government and penalties and fines for the companies

Which of the following statements is true of the duty of loyalty?

A) It requires agents to live up to the standards of performance expected of people in their occupation. B) It assigns an agent the duty to follow all reasonable and lawful instructions of a principal. C) It requires agents to keep accurate books that can be viewed by principals. D) It mandates that an agent act on behalf of one principal only to avoid conflicts of interest.

Which of the following is true of price elasticity of demand?

A. The price elasticity of demand is only defined by the competitive conditions in a country. B. Demand is said to be inelastic when a large change in price produces a large change in demand. C. Demand is said to be elastic when a large change in price produces a small change in demand. D. Price elasticity tends to be greater in countries with low income levels. E. The elasticity of demand is inversely proportional to the number of competitors offering a particular product.