1. Which is not a true statement about the formation of agency relationships

a.they are consensual.

b.a person must have contractual capacity to act as a principal.

c.agency agreements must always be in writing.

d.the relationship may involve ratification of the agent's acts.

2. Which of the following criteria might be considered most important in evaluating whether an Executive Assistant to the President of a company is "exempt" (i.e. not entitled) from receiving overtime pay

a.the Assistant is salaried.

b.the Assistant's primary duty is managing the President's itinerary which involves making important decisions.

c.the Assistant is required to exercise independent judgment.

d.b. and c. above.

3.Which is not a correct statement about tax contributions made to fund Social Security and Medicare

a.Both employees and employers contribute equally.

b.The amount of Social Security and Medicare deductions are capped.

c.Self-employed independent contractors pay both employee and employer portions.

d.High income earners are subject to additional Medicare tax on investment earnings.