Under the Restatement (Second) of the Law of Agency, an agency relationship generally is terminated by operation of law in all of the following situations except the

A. Principal's death.
B. Principal's incapacity.
C. Agent's renunciation of the agency.
D. Agent's failure to acquire a necessary business license.

Answer: C. Agent's renunciation of the agency.

Business

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If order quantity is increased, annual holding cost ________, annual order cost ________, and change in annual total cost ________

A) decreases, increases, is positive B) decreases, increases, cannot be determined C) increases, decreases, is negative D) increases, decreases, cannot be determined

Business

Joanne Grey, a senior consultant, and David Young, a junior consultant, are conducting a systems analysis for a client to determine the feasibility of integrating and automating clerical functions

Joanne had previously worked for the client, but David was a recent hire. The first morning on the job, Joanne directed David to interview a departmental supervisor and learn as much as possible about department operations. David introduced himself and said, "Your company has hired us to study how your department works so we can make recommendations on how to improve its efficiency and lower its cost. I would like to interview you to determine what goes on in your department." David questioned the supervisor for 30 minutes but found him to be uncooperative. David gave Joanne an oral report on how the interview went and what he learned about the department. Describe several flaws in David's approach to obtaining information. How should this task have been performed?

Business