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| 1 | |
In an agency relationship, the __________ is authorized to act for and on behalf of the __________, who hires the __________ to represent him/her. |
| | A) | Principle, agent, principle |
| | B) | Agent, principle, agent |
| | C) | Obligor, obligee, obligor |
| | D) | Obligee, obligor, oblige |
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| 2 | |
Agency relationships can be created based on all but which of the following forms of authority? |
| | A) | Expressed agency |
| | B) | Durable Agency |
| | C) | Implied authority |
| | D) | Ratification |
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| 3 | |
If the principal agrees to hire no other agent for a period of time or until a particular job is done, the principal and agent have entered into an __________ agency contract. |
| | A) | Exclusive |
| | B) | Collaborative |
| | C) | Partnered |
| | D) | Explicit |
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| 4 | |
A __________ power of attorney is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity. |
| | A) | Standard |
| | B) | Permanent |
| | C) | Durable |
| | D) | General |
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| 5 | |
Apparent agency is also known as __________. |
| | A) | Agency by equity |
| | B) | Agency by expectation |
| | C) | Agency by estoppel |
| | D) | Agency by inference |
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| 6 | |
Which of the following is not a requirement for agency by ratification? |
| | A) | An individual must misrepresent himself/herself as an agent for another party |
| | B) | The principal accepts the unauthorized act |
| | C) | The principal must have incomplete knowledge of all material facts regarding the contract |
| | D) | The principal must accept the entirety of the agent's act |
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| 7 | |
An __________ is formed when a principal leads a third party to believe that another individual serves as his/her agent, but the principal had made no agreement with the "so-called" agent. |
| | A) | Expressed agency |
| | B) | Agency by implied authority |
| | C) | Agency by estoppel |
| | D) | Agency by ratification |
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| 8 | |
A(n) __________ is a person who contracts with another to do something for him/her, but who is not controlled by the other nor subject to the other's right to control with respect to his/her physical conduct in the performance of the undertaking. |
| | A) | Principal |
| | B) | Employer |
| | C) | Employee |
| | D) | Independent contractor |
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| 9 | |
The Internal Revenue Service (IRS) has outlined __________ different criteria for its auditors to consider in determining whether someone is an independent contractor. |
| | A) | Ten (10) |
| | B) | Twelve (12) |
| | C) | Twenty (20) |
| | D) | Twenty-five (25) |
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| 10 | |
Under the duty of __________, if an agent makes authorized expenditures in the course of working on behalf of the principal, the principal has a duty to reimburse the agent for that amount of money. |
| | A) | Sublimation |
| | B) | Subrogation |
| | C) | Ratification |
| | D) | Indemnification |
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