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A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time-to-time, at interest, the moneys which may be in hand, omits to make such investments.
  • a)
    A need not make good to B the interest usually obtained by such investments
  • b)
    A can partially make good to B the interest usually obtained by such investments
  • c)
    A must make good to B the interest usually obtained by such investments
  • d)
    None of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A, an agent engaged in carrying on for B a business, in which it is th...
Explanation:


  • Agent's Duty: A, as an agent, has a duty to act in the best interest of B and carry out the business in a diligent manner.

  • Customary Practice: It is customary in the business to invest the available moneys at interest from time to time.

  • Omission to Invest: A's failure to make such investments is a breach of duty as it goes against the customary practice.

  • Liability for Interest: A must make good to B the interest usually obtained by such investments because it is part of the normal course of business and any losses incurred by not following this practice should be compensated.

  • Legal Obligation: A is legally obligated to compensate B for the interest that would have been earned if the investments were made as per the customary practice.

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A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time-to-time, at interest, the moneys which may be in hand, omits to make such investments.a)A need not make good to B the interest usually obtained by such investmentsb)A can partially make good to B the interest usually obtained by such investmentsc)A must make good to B the interest usually obtained by such investmentsd)None of theseCorrect answer is option 'C'. Can you explain this answer?
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A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time-to-time, at interest, the moneys which may be in hand, omits to make such investments.a)A need not make good to B the interest usually obtained by such investmentsb)A can partially make good to B the interest usually obtained by such investmentsc)A must make good to B the interest usually obtained by such investmentsd)None of theseCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time-to-time, at interest, the moneys which may be in hand, omits to make such investments.a)A need not make good to B the interest usually obtained by such investmentsb)A can partially make good to B the interest usually obtained by such investmentsc)A must make good to B the interest usually obtained by such investmentsd)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time-to-time, at interest, the moneys which may be in hand, omits to make such investments.a)A need not make good to B the interest usually obtained by such investmentsb)A can partially make good to B the interest usually obtained by such investmentsc)A must make good to B the interest usually obtained by such investmentsd)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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