acct 324 exam 2 review

acct 324 exam 2 review - 9. Which of the following is...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
9. Which of the following is necessary for an agency relationship to be terminated by operation of law? I. If the agreement of the agency relationship becomes illegal II. If the principal dies III. If the principal goes bankrupt a. I only b. I and II only c. II and III only d. I, II, or III Correct answer: D 10. In which of the following cases will an agent usually be held liable under a contract made with a third party? I. When the principal is undisclosed II. When the principal is partially disclosed III. When the principal is fully disclosed a. I and II only b. II and III only c. I, II, and III d. Neither I, II, nor III Correct answer: A 11. Which of the following statements about worker's compensation is true? I. Worker's compensation insurance is deducted from an employee's salary. II. Worker's compensation benefits provide for burial expenses and payments to surviving dependent children. III. Temporary workers are generally allowed to collect worker's compensation. a. I only b. II only c. III only d. I, II, and III Correct answer: B Worker's compensation is not deducted from an employee's salary-it is paid solely by the employer, and because temporary workers are typically independent contractors or employed by an agency, they typically do not collect it. However, it is true that worker's compensation covers burial expenses, payments to surviving children, and more. Which one of the following will render a corporation ineligible for S-Corporation Status?— The corporation has 105 stockholders. (The maximum amount of shareholders allowed in a S- Corp is 100) Which of the following conditions will prevent a corporation from qualifying as an S Corporation?--- The Corporation has both common and preferred stock. ( S-Corp is allowed only one class of stock) A principal and agent relationship requires a ______?— meeting of the minds and consent to act Generally, a disclosed principal will be liable to third parties for its agent’s unauthorized misrepresentation if the agent is an---- Employee NOT an independent contractor
Background image of page 1

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

View Full DocumentRight Arrow Icon
A written agency agreement is required any time A an agent has been employed for more than one year. B the purpose of the agency involves real estate. C the agent will be acquiring land on behalf of the principal. D All of the above require a written agency agreement. An agency contract must be in writing if the agent is empowered to buy, sell or lease real estate, or if the agency, by the terms of the agreement, is to last for more than one year from the date of the agency agreement. Answer A is not correct because it does not indicate that when the agent was employed, the terms were for more than one year. Answer B is not correct because it does not indicate what the specific role of the agent was to be. Answer C is correct because it does indicate that the agent will be acquiring land. Glenn's SportCenter Corp. operates 47 retail sporting goods outlets, mostly in the western United States. Glenn's has rigid
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/18/2011 for the course ACCT 324 taught by Professor Eppink during the Spring '10 term at South Carolina.

Page1 / 13

acct 324 exam 2 review - 9. Which of the following is...

This preview shows document pages 1 - 3. Sign up to view the full document.

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