A broker took a listing and later discovered that the client had been declared legally incompetent before signing the listing. The listing is now
A) binding because the broker was acting as the owner's agent in good faith.
B) of no value to the broker because it is void.
C) the basis for the recovery of a commission if the broker produces a buyer.
D) renegotiable.
Answer: B) of no value to the broker because it is void.
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Which of the following is not one of the major differences between financial and operational auditing?
A) The financial audit is oriented to the past, but an operational audit concerns performance for the future. B) The financial audit report has widespread distribution, but the operational audit report has limited distribution. C) Financial audits deal with the information on the financial statements, but operational audits are concerned with the information in the ledgers. D) Financial audits are limited to matters that directly affect the fairness of the financial statement presentation, but operational audits cover any aspect of efficiency and effectiveness.
If the cash budget of a company shows a cash shortage, the company would most likely
A) arrange to take out a short-term loan. B) cut salaries of employees. C) sign up for fewer orders so that it could control costs. D) lay off employees for that period.