ch 31 - Chapter 31 Agency Formation and Duties TRUE/FALSE...

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Sheet1 Page 1 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. TEST BANK A¡ªUNIT SEVEN: AGENCY AND EMPLOYMENT ANSWER: T PAGE: 638 TYPE: N NAT: AACSB Analytic AICPA Legal
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Sheet1 Page 2 A4. An independent contractor¡¯s 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 agent¡¯s performance. ANSWER: F PAGE: 639 TYPE: N NAT: AACSB Analytic AICPA Legal CHAPTER 31: AGENCY FORMATION AND DUTIES 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: =
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Page 3 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. ANSWER: F PAGE: 642 TYPE: = NAT: AACSB Analytic AICPA Legal A10. A minor can be an agent. ANSWER: T PAGE: 642 TYPE: = NAT: AACSB Analytic AICPA Legal B10. An agency relationship cannot exist in the absence of a formal agreement. ANSWER: F
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ch 31 - Chapter 31 Agency Formation and Duties TRUE/FALSE...

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