Consideration is required for an agency to be formed between a principal and an agent.
An agent has apparent authority to act if actions of the principal to the third party would lead a reasonable person in the third person's position to believe that the principal has authorized the agent to act.
The most important duty of the principal toward his agent is to indemnify the agent for expenses incurred within the scope of the agency.
An employer will be liable for the torts of an independent contractor, if the independent contractor is acting for the benefit of the employer.
In the case of a publicly owned corporation, a shareholder will never be liable for the corporate debts.
In the case of an agency relationship, which of the following terms best represents the one for whom the work is performed?
When an agent and a third party interact, the third party has notice that the agent is acting for a principal but it does not know the principal's identity. In such a situation the principal is said to be _____.
_____ authority is communicated to an agent in writing or orally.
Which of the following is the most important duty of the principal toward his agent?
Indemnifying the agent for expenses incurred within the scope of the agency
Compensating the agent according to the terms of the contract
Maintaining a relationship of trust and confidence
Acting with reasonable skill and care
If _____ then the agent alone is party to the contract.
the principal is fully disclosed
the principal is identified
the principal is partially disclosed
the principal is undisclosed
_____ is the affirmation by a person of a prior act which did not bind him but which was done on his account.
A _____ is an unincorporated business owned by a single individual.
limited liability company
Identify the correct statement regarding a limited partnership.
The limited partnership agreement is a public document.
The certificate of limited partnership filed with the state details and determines the rights, responsibilities, and relationships of the partners.
In order to form a limited partnership, the owners must file a certificate of limited partnership with the state.
Limited partnerships are rarely governed by a partnership agreement.
If a limited liability company elects to be member-managed:
the governance in the company is like a general partnership.
the power to bind the LLC attaches to the managers.
the governance in the company is more like a corporation.
the owners will elect officers to run the company.
In which of the following types of corporation the outstanding shares of stock are held by a small number of persons, frequently family relatives or friends?
Closely held corporation
|Due By (Pacific Time)||07/24/2015 12:00 am|
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