Management Homework Help

1-Which of the following is not included among the duties of an agent?

a.The agent must

not go against specific instructions.

b.The agent is free to delegate responsibility to perform the contract.

c.The agent must perform functions set out in the contract.

d.The agent must account for funds.

e.The agent must act within the limits of the agency contract.

2-Which of the following is true regarding contracts entered into by a sole proprietorship?

a.The contracts entitle third parties to recover losses for breach of contract only against the assets of the sole proprietorship and not the sole proprietor him or herself.

b.The contracts only bind the sole proprietorship and not the sole proprietor.

c.The contracts expose the sole proprietor’s personal assets to creditors if the contract is breached.

d.The contracts operate in the same manner as if the business were operated as a corporation or partnership.

e.The contracts are only enforceable if the sole proprietor enters into the contract him or herself.