1.True or False: An agency relationship canonlybe terminated by the agreement of the parties.

True

False

2.Which party "renounces" an agency relationship?

a.Principal.

b.Agent.

c.Third party.

3.Assuming all other requirements are met, a corporation may elect to be treated as an S-Corp under federal tax law if it has:

a.An LLC as a shareholder.

b.Multiple classes of shares.

c.100 or fewer shareholders.

4.Apparent authority is established by the reasonable belief of the:

a.Third party.

b.Agent.

c.Principal.