ACCT 324 Exam 2 Questions With Complete Solutions.
The duty of ________blank is the generally considered the most important duty
an agent owes to a principal.
A.) obedience
B.) loyalty
C.) reimbursement
D.) indemnification
loyalty
John, a real estate agent, buys for himself a property that his principal, Arthur,
wanted to buy. If John is aware that Arthur wanted to buy the property, then the
court will most likely take which of the following actions?
A.) The court will grant legal rights for the property to the party who is willing to
pay the most.
B.) The court will grant John the legal rights for the property.
C.) The court will sell the property to a third party.
D.) The court will grant Arthur the legal rights fo
D
Employees are ________blank of an employer.
agents
________blank is perhaps the most important consideration a court makes when
determining whether a worker is an employee or an independent contractor.
A.) Employer control
B.) Employee pay
C.) Implied agency
D.) Tax law
A
Agency contracts do not need to be in writing unless an agent has been given
power of authority or if the agent will be entering into a contract that the
________blank requires to be in writing.
Statute of Frauds
A principal has a duty to ________blank the agent for any losses the agent incurs
in the course of working on behalf of the principal.
, A.) account to
B.) compensate
C.) indemnify
D.) pay wages to
C
Principal-agent relationships are most significant for issues that are included in
the category of ________blank law.
contract
Which statement best describes a fiduciary?
A.) Fiduciaries have a duty to act primarily for another person's benefit.
B.) Fiduciaries may choose to act for another person's benefit, but no duty exists.
C.) Fiduciaries have a responsibility to act on their own behalf in a manner equal
to how they may choose to act on behalf of another person.
D.) Fiduciaries have a duty to act primarily for their own benefit.
A
Which of the following statements is true regarding a partially disclosed
principal?
A.) The principal and the agent are both considered parties to the contract and
each may be liable separately from the other.
B.) The third party is not aware the agent is acting on behalf of a principal.
C.) The agent is never liable for the agreement because he or she is not a party to
the transaction.
D.) The agent is liable for the agreement because he or she is a party to the
transaction, and the princi
A
Which of the following statements is true regarding an agent who commits a tort
that injures a third party?
A.) The agent is personally liable regardless of the principal's classification and
liability of the principal.Correct
B.) The principal is liable for the torts of his or her agent only if the principal
directed the agent to commit the tort.
C.) The agent is personally liable only if he or she was not acting within the scope
The duty of ________blank is the generally considered the most important duty
an agent owes to a principal.
A.) obedience
B.) loyalty
C.) reimbursement
D.) indemnification
loyalty
John, a real estate agent, buys for himself a property that his principal, Arthur,
wanted to buy. If John is aware that Arthur wanted to buy the property, then the
court will most likely take which of the following actions?
A.) The court will grant legal rights for the property to the party who is willing to
pay the most.
B.) The court will grant John the legal rights for the property.
C.) The court will sell the property to a third party.
D.) The court will grant Arthur the legal rights fo
D
Employees are ________blank of an employer.
agents
________blank is perhaps the most important consideration a court makes when
determining whether a worker is an employee or an independent contractor.
A.) Employer control
B.) Employee pay
C.) Implied agency
D.) Tax law
A
Agency contracts do not need to be in writing unless an agent has been given
power of authority or if the agent will be entering into a contract that the
________blank requires to be in writing.
Statute of Frauds
A principal has a duty to ________blank the agent for any losses the agent incurs
in the course of working on behalf of the principal.
, A.) account to
B.) compensate
C.) indemnify
D.) pay wages to
C
Principal-agent relationships are most significant for issues that are included in
the category of ________blank law.
contract
Which statement best describes a fiduciary?
A.) Fiduciaries have a duty to act primarily for another person's benefit.
B.) Fiduciaries may choose to act for another person's benefit, but no duty exists.
C.) Fiduciaries have a responsibility to act on their own behalf in a manner equal
to how they may choose to act on behalf of another person.
D.) Fiduciaries have a duty to act primarily for their own benefit.
A
Which of the following statements is true regarding a partially disclosed
principal?
A.) The principal and the agent are both considered parties to the contract and
each may be liable separately from the other.
B.) The third party is not aware the agent is acting on behalf of a principal.
C.) The agent is never liable for the agreement because he or she is not a party to
the transaction.
D.) The agent is liable for the agreement because he or she is a party to the
transaction, and the princi
A
Which of the following statements is true regarding an agent who commits a tort
that injures a third party?
A.) The agent is personally liable regardless of the principal's classification and
liability of the principal.Correct
B.) The principal is liable for the torts of his or her agent only if the principal
directed the agent to commit the tort.
C.) The agent is personally liable only if he or she was not acting within the scope
