BYU ACC-241 Final Exam with answers

BYU ACC-241 Final Exam with answers
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Agency Relationship - CORRECT ANSWERS ✔✔Fiduciary
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relationship that arises when one person manifests assent|\ |\ |\ |\ |\ |\ |\



to another person
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Principal - CORRECT ANSWERS ✔✔Person who manifests
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assent and directs the other person to perform various
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tasks


Agent - CORRECT ANSWERS ✔✔Acts on the principal's
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behalf, subject to the principal's control and consents so
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to act
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Respondeat Superior - CORRECT ANSWERS ✔✔"Let the |\ |\ |\ |\ |\ |\ |\



master answer" A principal is vicariously liable for the
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wrongdoing of their agent |\ |\ |\




Independent Contractor - CORRECT ANSWERS ✔✔A |\ |\ |\ |\ |\ |\



person who contracts with another to do something for
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them but is not controlled by the other or subject to their
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control.

,Principal (With an independent Contractor) - CORRECT
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ANSWERS ✔✔Controls the result, but not the method
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used to obtain the result. Not liable for the method.
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Agency by Agreement (Express) - CORRECT ANSWERS
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✔✔Explicit agreement to an agency relationship. Done
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through clear words, expression, contract or other
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communication.


Implied Agency - CORRECT ANSWERS ✔✔An agency
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relationship formed when the principal and agent simply |\ |\ |\ |\ |\ |\ |\ |\



act out their arrangement rather than discussing it. Only
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consent is required to make an agency relationship.
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Apparent Authority (Principal) - CORRECT ANSWERS ✔✔A
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principal is liable for understandings that the principal has
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created. If the principal makes something apparent to the
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agent, the agent can act on it. An innocent principal is
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not responsible for misrepresentations of an agent.
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Agency by Ratification - CORRECT ANSWERS ✔✔Not
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common, a principal expresses their intent to be bound to
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a contract but did not authorize when it was formed.
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Happens after the agent performs the task.
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, Duties of a Principal - CORRECT ANSWERS ✔✔1.
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Compensation
2. Reimbursement and Indemnification
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3. Cooperation
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Compensation - CORRECT ANSWERS ✔✔A principal must |\ |\ |\ |\ |\ |\ |\



compensate the agent by pay the agent for services
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rendered


Reimbursement - CORRECT ANSWERS ✔✔A principal must |\ |\ |\ |\ |\ |\



reimburse an agent for authorized expenses incurred in
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the scope of performing the agency agreement
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Indemnification - CORRECT ANSWERS ✔✔The agent must |\ |\ |\ |\ |\ |\ |\



be indemnified for losses suffered by the agent because
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of misconduct of the principal
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Duties of an Agent - CORRECT ANSWERS ✔✔1. Loyalty
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2. Performance
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3. Notification
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4. Accountability
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