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  • Topic: Independent contractor, Agency, Agency law
  • Pages : 16 (2314 words )
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  • Published : January 13, 2011
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A fiduciary relationship allows the parties to avoid obligations without liability.
ANSWER: F
PAGE: 638

A corporate officer is not an agent for the corporation.
ANSWER: F
PAGE: 638

An officer of a corporation cannot possess the power to bind the corporation.
ANSWER: F
PAGE: 638

An agent is authorized to act on behalf of a principal in doing business with third parties.
ANSWER: T
PAGE: 638

An employee may act in the capacity of an agent.
ANSWER: T
PAGE: 638

A fiduciary relationship involves trust and confidence.
63 ANSWER: T
PAGE: 638
An independent contractor’s physical conduct is controlled, or subject to control, by his or her employer.
ANSWER: F
PAGE: 639

An agency relationship does not exist outside employer-employee relationships.
ANSWER: F
PAGE: 638

Building subcontractors are not independent contractors.
ANSWER: F
PAGE: 639

Employees who deal with third parties are agents of their employers. ANSWER: T
PAGE: 638
TYPE:

An independent contractor is an employer who controls his or her agent’s performance.
ANSWER: F
PAGE: 639

An employee may not act in the capacity of an agent.
ANSWER: F
PAGE: 638

All employment laws apply to independent contractors.
ANSWER: F
PAGE: 639

An independent contractor may act in the capacity of an agent. ANSWER: T
PAGE: 639

Agency relationships exist only outside employment relationships. ANSWER: F
PAGE: 639

An independent contractor always acts in the capacity of an agent. ANSWER: F
PAGE: 639

An agency relationship can be formed without consideration. ANSWER: T
PAGE: 642

A minor cannot be appointed as an agent.
ANSWER: F
PAGE: 642

A minor can be an agent.
ANSWER: T
PAGE: 642

An agency relationship cannot exist in the absence of a formal agreement.
ANSWER: F page 642

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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 A—UNIT SEVEN: AGENCY AND EMPLOYMENT
ANSWER: T
PAGE: 638
TYPE:
N
NAT: AACSB Analytic
AICPA Legal
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
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...
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