BUS303 FINAL EXAM 2025 NEWEST QUESTIONS AND
DETAILED CORRECT ANSWER | A+ GRADE STUDY
RESOURCE
The sole proprietor has ________ liability.
limited organizational
zero personal
unlimited personal
complete organizational - ans -unlimited personal
A(n) ________ is a contract a principal and agent enter into that says the principal
cannot employ another agent other than the one stated.
apparent agency contract
exclusive agency contract
ratified contract
exclusive principal contract - ans -exclusive agency contract
An agency by ratification occurs when the principal ________.
accepts an unauthorized act created by an unauthorized agent
creates the appearance of an agency that in actuality does not exist
accepts an authorized act created by an authorized agent
accepts an act carried out under the implied authority of an agent - ans -
unauthorized agent
Which of the following would lead to the termination of an agency by operation
of law?
the loss of a required qualification
a change in the law
the loss or destruction of the subject matter of the agency
the death of either the principal or agent - ans -the death of either the principal or
agent
, Which of the following is a fiduciary duty owed by an agent not to act adversely to
the interests of the principal?
duty of loyalty
duty of undertaking
duty of resolution
duty of discharge - ans -duty of loyalty
________ is a rule that says an employer is liable for the tortious conduct of its
employees or agents while they are acting within the scope of the employer's
authority.
Ad infinitum
Acienter
Respondeat superior
Voir dire - ans -Respondeat superior
According to the coming and going rule, what is the liability of the principal for
injuries caused by its agents and employees while they are on their way to or
from work?
limited liability
no liability
complete liability
vicarious liability - ans -no liability
The principal is liable for the tortious conduct of an agent who is acting within the
scope of his or her authority.
True
False - ans -True
Which of the following is a true statement about independent contractors?
The principal asserts substantial control over the independent contractor.
The principal is liable for the torts of his or her independent contractors.
The principal asserts little control over the independent contractor.
DETAILED CORRECT ANSWER | A+ GRADE STUDY
RESOURCE
The sole proprietor has ________ liability.
limited organizational
zero personal
unlimited personal
complete organizational - ans -unlimited personal
A(n) ________ is a contract a principal and agent enter into that says the principal
cannot employ another agent other than the one stated.
apparent agency contract
exclusive agency contract
ratified contract
exclusive principal contract - ans -exclusive agency contract
An agency by ratification occurs when the principal ________.
accepts an unauthorized act created by an unauthorized agent
creates the appearance of an agency that in actuality does not exist
accepts an authorized act created by an authorized agent
accepts an act carried out under the implied authority of an agent - ans -
unauthorized agent
Which of the following would lead to the termination of an agency by operation
of law?
the loss of a required qualification
a change in the law
the loss or destruction of the subject matter of the agency
the death of either the principal or agent - ans -the death of either the principal or
agent
, Which of the following is a fiduciary duty owed by an agent not to act adversely to
the interests of the principal?
duty of loyalty
duty of undertaking
duty of resolution
duty of discharge - ans -duty of loyalty
________ is a rule that says an employer is liable for the tortious conduct of its
employees or agents while they are acting within the scope of the employer's
authority.
Ad infinitum
Acienter
Respondeat superior
Voir dire - ans -Respondeat superior
According to the coming and going rule, what is the liability of the principal for
injuries caused by its agents and employees while they are on their way to or
from work?
limited liability
no liability
complete liability
vicarious liability - ans -no liability
The principal is liable for the tortious conduct of an agent who is acting within the
scope of his or her authority.
True
False - ans -True
Which of the following is a true statement about independent contractors?
The principal asserts substantial control over the independent contractor.
The principal is liable for the torts of his or her independent contractors.
The principal asserts little control over the independent contractor.
