Answer Sheet 3 Flashcards
Week 4 & 5
Agency is an employee relationship in which the agent agrees to perform a task for, and under the control of, the principal.
TRUE
As a general rule, an agent is liable on contracts entered into on behalf of a fully disclosed principal
FALSE
The standard definition of Risk Management is the potential of gaining or losing something of value.
TRUE
An agent cannot disclose nor use for their own benefit any information they learn during the agency.
TRUE
Material Risk is the risk that your company strategy becomes less effective and your company struggles to reach its goal as a result?
FALSE
John Stuart Mills would have been supportive of Risk Management.
TRUE
One of the problems facing employees in the Gig Economy is employee misclassification as an independent contractor.
TRUE
Of the ethics philosophies which one supports the use of Risk Management.
(a) Relativism
(b) Consequentialist
(c) Utilitarianism
(d) Deontological
(c) Utilitarianism
Which of the following persons is an agent?
(a) Diane, a shoe salesperson for a retail store.
(b) Tim, a real estate broker for a large real estate company.
(c) Craig, a telephone marketing employee.
(d) All the above.
(d) All the above.
What is considered a common area of danger?
(a) fire, flood.earthquake
(b) structural collapse
(c) violent storms
(d) All of the above
(d) All of the above
Which of the following is not required of an agency relationship?
(a) Consideration.
(b) Fiduciary relationship.
(c) Consent of the parties to act as agent or principal.
(d) Control of principal over agent’s conduct.
(a) Consideration.
Layout of the plant, Interconnectivity of roads/accessibility and proximity of the Fire station/Police Station/Hospitals.
(a) Risk Assessment
(b) Risk Evaluation.
(c) Risk Identification
(d) Risk Exposure to Data
(d) Risk Exposure to Data
An agency relationship can be created:
(a) by the conduct of the parties.
(b) only by the meeting of all the standards of contract law.
(c) only by a written agreement.
(d) all of these answers are true
(a) by the conduct of the parties.
The process for identifying the risk is:
(a) Application of a systematic process.
(b) Understand what could happen
(c) Form and appreciation of the causes of the risks
(d) All the above
(d) All the above
If the agent is disloyal to the principal:
(a) the agency agreement automatically terminates and the principal may rescind the transaction.
(b) the principal has the right to collect any actual damages sustained as a result of the agent’s disloyalty.
(c) the principal has a right to recover any profits earned as a result of his agent’s disloyal conduct.
(d) All the above are correct.
(d) All the above are correct.
