BUS 250 Exam 3 || with Errorless Solutions 100%.
Which of the following persons is an agent? correct answers Diane, a shoe salesperson for a
retail store
Tim, a real estate broker for a large real estate company
Craig, a telephone marketing employee
Which of the following is not required of an agency relationship? correct answers Consideration
Mohammad was an employee in the new product development department of Estay Inc.
Mohammad was directly involved in the development of a new product that Estay intended to
launch in 6 months. Estay took great care to keep information concerning the new product a
secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to leave Estay to direct Ceries'
marketing department. Which statement is correct? correct answers Mohammad cannot share
with Ceries the confidential information he knows about Estay's new product because he has a
duty not to disclose confidential information he acquired during the agency.
John hired Tim to sell his house. Which statement is correct? correct answers John is Tim's
principal
The doctrine of estoppel would most often apply in situations of correct answers apparent
authority
An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule
applies to conduct correct answers during both working hours and off-duty time
Pamela hired Lena to sell her business, Lena correct answers can buy the business only with
Pamela's permission
Janet was employed as a sales representative for Esday, Inc. An appreciative customer gave her a
diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet?
correct answers Yes, but only if she discloses the gift to Esday and Esday consents to her
keeping the bracelet
Chance is traveling marketing representative for a publishing company. He is an independent
contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes
an accident. Judy is injured. Judy can correct answers hold Chance but no the company liable.
Mrs. O'Leary hired Jenna to sell her house in Michigan. She executed a power of attorney in
favor of Jenna authorizing her to do "anything and everything associated with the sale of real
estate, acting as a prudent person." On May 30, Jenna finalized a deal with Brandon for the
purchase of the house. Brandon and Jenna signed the real estate contract that day. Jenna learned
the next day that Mrs. O'Leary had died May 29. correct answers The contract is void since the
agency terminated May 29.
, Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home since she
had to attend a meeting. After showing the car, Jim left the keys in it and the car was stolen.
Which statement is correct? correct answers Since Jim is a gratuitous agent, he will be only
liable for the loss of the car if his conduct constitutes gross negligence.
HBR Accounting hired Denise, a CPA, to prepare tax returns. Which statement is correct?
correct answers Denise, as a CPA, is an agent with special skills. She is held to a higher duty
than ordinary negligence.
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included
supervising children and organizing the games. Circus did not investigate Art's background,
which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's
kitchen during a birthday party. Circus Pizza: correct answers may be held liable on the basis of
negligent hiring
When a principal is partially disclosed: correct answers the agent and principal will be jointly
and severally liable on the contract
Seventy farmers in Morgan County joined together to gain the advantages of purchasing seed
and fertilizer in bulk and of obtaining better prices when distributing and selling their crops.
These farmers have formed a correct answers cooperative
The Federal Trade Commission requires franchisors to correct answers give prospective
franchisees an offering circular at least 14 business days prior to the signing of a contract or
payment of any money.
The importance of a Subchapter S corporation is correct answers its treatment of shareholders for
income taxation purposes
The business form that is taxed as a partnership and gives all owners limited liability is correct
answers a limited liability company
Which of the following transactions would be considered by the IRS to be a taxable sale of
assets? Changing the form of business from correct answers a corporation to an LLC
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over
for his father in the partnership and was well qualified to do the work his father had done. Which
statement best describes Frank's rights in the partnership if he inherits the interest? correct
answers Frank is entitled to the value in the partnership, but not to become a full partner
Jill was a limited partner in a retail business that was sued by a customer who fell in the store.
The customer claimed the business was negligent in caring for its floors. Which statement best
describes Jill's potential liability? correct answers Jill can only be liable to the amount of her
investment
The form of business ownership that most easily transferable is the correct answers corporation
Which of the following persons is an agent? correct answers Diane, a shoe salesperson for a
retail store
Tim, a real estate broker for a large real estate company
Craig, a telephone marketing employee
Which of the following is not required of an agency relationship? correct answers Consideration
Mohammad was an employee in the new product development department of Estay Inc.
Mohammad was directly involved in the development of a new product that Estay intended to
launch in 6 months. Estay took great care to keep information concerning the new product a
secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to leave Estay to direct Ceries'
marketing department. Which statement is correct? correct answers Mohammad cannot share
with Ceries the confidential information he knows about Estay's new product because he has a
duty not to disclose confidential information he acquired during the agency.
John hired Tim to sell his house. Which statement is correct? correct answers John is Tim's
principal
The doctrine of estoppel would most often apply in situations of correct answers apparent
authority
An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule
applies to conduct correct answers during both working hours and off-duty time
Pamela hired Lena to sell her business, Lena correct answers can buy the business only with
Pamela's permission
Janet was employed as a sales representative for Esday, Inc. An appreciative customer gave her a
diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet?
correct answers Yes, but only if she discloses the gift to Esday and Esday consents to her
keeping the bracelet
Chance is traveling marketing representative for a publishing company. He is an independent
contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes
an accident. Judy is injured. Judy can correct answers hold Chance but no the company liable.
Mrs. O'Leary hired Jenna to sell her house in Michigan. She executed a power of attorney in
favor of Jenna authorizing her to do "anything and everything associated with the sale of real
estate, acting as a prudent person." On May 30, Jenna finalized a deal with Brandon for the
purchase of the house. Brandon and Jenna signed the real estate contract that day. Jenna learned
the next day that Mrs. O'Leary had died May 29. correct answers The contract is void since the
agency terminated May 29.
, Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home since she
had to attend a meeting. After showing the car, Jim left the keys in it and the car was stolen.
Which statement is correct? correct answers Since Jim is a gratuitous agent, he will be only
liable for the loss of the car if his conduct constitutes gross negligence.
HBR Accounting hired Denise, a CPA, to prepare tax returns. Which statement is correct?
correct answers Denise, as a CPA, is an agent with special skills. She is held to a higher duty
than ordinary negligence.
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included
supervising children and organizing the games. Circus did not investigate Art's background,
which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's
kitchen during a birthday party. Circus Pizza: correct answers may be held liable on the basis of
negligent hiring
When a principal is partially disclosed: correct answers the agent and principal will be jointly
and severally liable on the contract
Seventy farmers in Morgan County joined together to gain the advantages of purchasing seed
and fertilizer in bulk and of obtaining better prices when distributing and selling their crops.
These farmers have formed a correct answers cooperative
The Federal Trade Commission requires franchisors to correct answers give prospective
franchisees an offering circular at least 14 business days prior to the signing of a contract or
payment of any money.
The importance of a Subchapter S corporation is correct answers its treatment of shareholders for
income taxation purposes
The business form that is taxed as a partnership and gives all owners limited liability is correct
answers a limited liability company
Which of the following transactions would be considered by the IRS to be a taxable sale of
assets? Changing the form of business from correct answers a corporation to an LLC
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over
for his father in the partnership and was well qualified to do the work his father had done. Which
statement best describes Frank's rights in the partnership if he inherits the interest? correct
answers Frank is entitled to the value in the partnership, but not to become a full partner
Jill was a limited partner in a retail business that was sued by a customer who fell in the store.
The customer claimed the business was negligent in caring for its floors. Which statement best
describes Jill's potential liability? correct answers Jill can only be liable to the amount of her
investment
The form of business ownership that most easily transferable is the correct answers corporation
