Ch17-TB-BLTE-8e

Ch17-TB-BLTE-8e - Chapter 17 Agency TRUE/FALSE QUESTIONS 1....

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 17 Agency TRUE/FALSE QUESTIONS 1. An officer of a corporation cannot possess the power to bind the corporation. ANSWER: F PAGE: 516 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 2. An employee may act in the capacity of an agent. ANSWER: T PAGE: 517 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 3. An agent whose employer does not have the right to control the agents performance is an independent contractor. ANSWER: T PAGE: 517 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 4. An independent contractor always acts in the capacity of an agent. ANSWER: F PAGE: 517 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 5. A minor can be an agent. ANSWER: T PAGE: 520 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 6. There does not need to be a written agreement between two parties to cre- ate an agency relationship. 1 2 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: T PAGE: 521 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 7. A principal may deny the existence of an agency relationship whenever it suits his or her purpose. ANSWER: F PAGE: 521 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 8. A principal can ratify an agreement made without authorization on his or her behalf by one who is not his or her agent. ANSWER: T PAGE: 521 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 9. An agency relationship is a fiduciary relationship. ANSWER: T PAGE: 523 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 10. An agent owes his or her principal a duty to act in good faith. ANSWER: T PAGE: 523 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 11. A principal owes his or her agent a duty to act in good faith. ANSWER: T PAGE: 523 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 12. An agent must use reasonable diligence and skill in acting on behalf of his or her principal. ANSWER: T PAGE: 523 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 13. An agent must maintain separate accounts for the principals funds and the agents personal funds. ANSWER: T PAGE: 524 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal CHAPTER 17: AGENCY 3 14. Generally, a principal has a duty to pay an agent for services rendered. ANSWER: T PAGE: 525 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 15. A principal has a duty to cooperate with the agent. ANSWER: T PAGE: 526 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 4 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS 16. A principal must indemnify an agent for liability due to authorized acts by the agent....
View Full Document

This note was uploaded on 11/03/2009 for the course ARE 18 taught by Professor Maxey during the Spring '08 term at UC Davis.

Page1 / 21

Ch17-TB-BLTE-8e - Chapter 17 Agency TRUE/FALSE QUESTIONS 1....

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online