Clark_11e-TB-Comb-Ch31

Clark_11e-TB-Comb-Ch31 - Chapter 31 Agency Formation and...

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Unformatted text preview: Chapter 31 Agency Formation and Duties TRUE/FALSE QUESTIONS A1. A fiduciary relationship allows the parties to avoid obligations without liability. ANSWER: F PAGE: 638 TYPE: N NAT: AACSB Analytic AICPA Legal B1. A corporate officer is not an agent for the corporation. ANSWER: F PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal A2. An officer of a corporation cannot possess the power to bind the corporation. ANSWER: F PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal B2. An agent is authorized to act on behalf of a principal in doing business with third parties. ANSWER: T PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal A3. An employee may act in the capacity of an agent. ANSWER: T PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal B3. A fiduciary relationship involves trust and confidence. 63 64 TEST BANK AUNIT SEVEN: AGENCY AND EMPLOYMENT ANSWER: T PAGE: 638 TYPE: N NAT: AACSB Analytic AICPA Legal A4. An independent contractors physical conduct is controlled, or subject to control, by his or her employer. ANSWER: F PAGE: 639 TYPE: = NAT: AACSB Analytic AICPA Legal B4. An agency relationship does not exist outside employer-employee relationships. ANSWER: F PAGE: 638 TYPE: N NAT: AACSB Analytic AICPA Legal A5. Building subcontractors are not independent contractors. ANSWER: F PAGE: 639 TYPE: = NAT: AACSB Reflective AICPA Legal B5. Employees who deal with third parties are agents of their employers. ANSWER: T PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal A6. An independent contractor is an employer who controls his or her agents performance. ANSWER: F PAGE: 639 TYPE: N NAT: AACSB Analytic AICPA Legal CHAPTER 31: AGENCY FORMATION AND DUTIES 65 B6. An employee may not act in the capacity of an agent. ANSWER: F PAGE: 638 TYPE: = NAT: AACSB Analytic AICPA Legal A7. All employment laws apply to independent contractors. ANSWER: F PAGE: 639 TYPE: = NAT: AACSB Analytic AICPA Legal B7. An independent contractor may act in the capacity of an agent. ANSWER: T PAGE: 639 TYPE: = NAT: AACSB Analytic AICPA Legal A8. Agency relationships exist only outside employment relationships. ANSWER: F PAGE: 639 TYPE: + NAT: AACSB Analytic AICPA Legal B8. An independent contractor always acts in the capacity of an agent. ANSWER: F PAGE: 639 TYPE: = NAT: AACSB Analytic AICPA Legal A9. An agency relationship can be formed without consideration. ANSWER: T PAGE: 642 TYPE: N NAT: AACSB Analytic AICPA Legal B9. A minor cannot be appointed as an agent....
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This note was uploaded on 10/11/2010 for the course MGT 301 taught by Professor Pederson during the Fall '10 term at SUNY Stony Brook.

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Clark_11e-TB-Comb-Ch31 - Chapter 31 Agency Formation and...

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