QUESTION 1

Agency is where authority is delegated from one person called the principal to another person called the agent.

True

False

QUESTION 2

To establish the existence of an agency relationship you must have a written contract between the principal and the agent.

True

False

QUESTION 3

A sole proprietorship is a business owned and operated by one person.

True

False

QUESTION 4

In order to form any sole proprietorship, a business certificate must be filed with the Secretary of State's Office in Albany.

True

False

QUESTION 5

The death of the sole proprietor will usually terminate the sole proprietorship Business.

True

False

QUESTION 6

A sole proprietorship is not allowed to use a trade name or assumed name.

True

False

QUESTION 7

Fiduciary duty is an obligation owed by a person who is in a position of trust or confidence to another.

True

False

QUESTION 8

Unlimited personal liability means the sole proprietor is only exposed to lose his or her assets invested in their business.

True

False

QUESTION 9

The principal will usually control the manner, the method, and the means of the work to be done by an independent contractor.

True

False

QUESTION 10

A sole proprietor is always required to file an assumed name or D.B.A. certificate.

True

False

QUESTION 11

A principal will never be responsible for the negligent conduct of an agent.

True

False

QUESTION 12

If an agent commits a Tort while on a frolic, the principal will not be held liable for the agent's conduct.

True

False

QUESTION 13

Expressed actual authority includes directions and instructions on how to do the job communicated by the principal to the agent.

True

False

QUESTION 14

The sole proprietor must file a separate tax return for his business income.

True

False

QUESTION 15

Prior to starting a business, all sole proprietors are required to register their business and file forms with the state and local governments.

True

False