1. Harold owns a rent house. Harold is going to the coast for the weekend....

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Accounting

1. Harold owns a rent house. Harold is going to the coast for the weekend. His friend, Terry, offers to watch over the property and respond to any tenant complaints over the weekend while Harold is out of town. What category of agent is Terry?

a.

Gratuitous agent.

b.

Employee agent.

c.

Employee (non-agent).

d.

Independent contractor agent.

e.

Independent employee agent.

2. Larry's Tools hired Alex to supervise all shipments made from the company's central delivery center. Alex's work week is set by Larry's Tools, and he is paid a salary and receives benefits. Which best describes Alex's agency classification?

a.

An employee because the company has direction and control over his work hours and pay schedule.

b.

An employee because Alex works in the central delivery center.

c.

An independent contractor because Alex has supervisory responsibility.

d.

An independent contractor because Alex could also work at night for another employer.

e.

An employee because Alex receives benefits.

3. Sam's normally works in the United States, but during the summer, Sam has temporarily been assigned to work in Europe. Sam owns a salt-water fish tank stocked with high dollar fish. Sam hired Bliss to take care of his fish until he returns to Europe. Sam agrees to send Bliss $1,000 per month, and Bill agrees to use her own equipment. In this agency relationship, who is the principal?

a.

Sam

b.

Sam's employer

c.

Sam and his employer

d.

Bliss

e.

No agency relationship was formed.

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