exam 2 study material(Q and A)
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(Employee-independent contractor)
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(Employer control)
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(Fiduciaries have a duty to act primarily for another person's benefit.)
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(It is primarily state law.)
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(statute of frauds)
A limited partnership is an agreement between:
Multiple Choice at least two general partners and at least two limited partners. at least two general partners and at least one limited partner. at least one general partner and at least one limited partner. at least one general partner, which is required to be a corporation, and at least one limited partner, who is required to be a natural person.
Once a partnership has been ________blank, the partners begin the process of ________blank.
Multiple Choice dissolved; liquidation liquidated; winding up performed; redistribution terminated; dissolution
Agency contracts do not need to be in writing unless an agent has been given power of authority or if the agent will be entering into a contract that the ________blank requires to be in writing.
Multiple Choice expressed authority ratification agreement implied covenant statute of frauds
Lisa does not know that Karen is acting on behalf of a principal; thus, the principal is said to be ________blank
Multiple Choice hidden. veiled. incognito. undisclosed.
A(n) ________blank dissolution occurs when a partner dissolves the partnership in violation of the partnership agreement.
Multiple Choice illegal unfair wrongful de jure
Jorge enters into an agreement with Victoria, an interior designer, to remodel his house. Once Victoria has completed designing and decorating the house, she no longer has the authority to act on Jorge's behalf. Under the given circumstances, the agency terminated due to:
Multiple Choice impossibility. fulfillment of purpose. lapse of time. renunciation by the agent.
When a partnership rightfully dissolves, all the partners can do each of the following acts except:
Multiple Choice participate in the process of winding up. immediately withdraw their shares of partnership property. demand the partnership be wound up. unanimously agree to continue the business of the partnership.
A principal has a right to ________blank if a breach of contract occurs due to an agent's negligence.
Multiple Choice settlement indemnification reimbursement an accounting
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The general and limited partners must sign the certificate of limited partnership.
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The remaining partners may choose to continue the partnership.
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Vicarious liability holds the principal liable for any harm the agent/employee caused while working for the principal.
Partners complete the winding-up stage by which of the following methods?
When any partner stops fulfilling the role of a partner to the business by default By working for the benefit of the partnership in accordance with the partnership agreement When any partner stops fulfilling the role of a partner to the business by choice By taking account of the assets of the partner who has left and redistributing them among the other partners
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fulfillment of purpose.
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immediately withdraw their shares of partnership property.
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indemnification
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liquidated; winding up
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Actual notice
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An individual must misrepresent their identity as an agent for another party.
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By taking account of the assets of the partner who has left and redistributing them among the other partners
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Dissolution
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Durable power of attorney
Which of the following is true of agency law?
It is standardized and is the same from state to state. It is included under the category of federal law. It is included under the category of customary law. It is primarily state law.
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It usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed.
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Lapse of time
What kind of notice must a third party who had business interactions with the agent be given?
Multiple Choice Actual notice Notice in a newspaper Constructive notice No notice
________blank is defined as the change in the relation of the partners caused by any partner's ceasing to be associated with the carrying on, as distinguished from the winding up, of the business.
Multiple Choice Conciliation Dissolution Irreconcilable differences Separation
Agency laws are relevant to three types of business relationships. Which of the following is not one of those relationships?
Multiple Choice Employer-independent contractor Employee-independent contractorCorrect Employer-employee Principal-agent
Which statement best describes a fiduciary?
Multiple Choice Fiduciaries may choose to act for another person's benefit, but no duty exists. Fiduciaries have a duty to act primarily for another person's benefit. Fiduciaries have a responsibility to act on their own behalf in a manner equal to how they may choose to act on behalf of another person. Fiduciaries have a duty to act primarily for their own benefit.
Which of the following terminations occurs by act of parties?
Multiple Choice Impossibility Lapse of time Disloyalty of agent Changed circumstances
Which of the following statements is true of a constructive notice?
Multiple Choice It is received by parties directly related to the agency agreement. It is rarely used to announce the termination of an agency agreement. It usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed. It must be given to third parties who have had business interactions with the agent, and it directly informs them about the termination.
Which power of attorney is intended to continue beyond the principal's incapacitation?
Multiple Choice Special power of attorney Perpetual power of attorney Durable power of attorney General power of attorney
________blank is perhaps the most important consideration a court makes when determining whether a worker is an employee or an independent contractor.
Multiple Choice Tax law Employee pay Implied agency Employer control
To create a valid limited partnership, who must sign the certificate of limited partnership?
Multiple Choice The general partner must sign the certificate of limited partnership. The general and limited partners must sign the certificate of limited partnership. The limited partner must sign the certificate of limited partnership. The general and limited partners and the lender must sign the certificate of limited partnership.
Which of the following is required for an agency by ratification to be effective?
Multiple Choice The principal may ratify some parts of the agent's acts or all parts of the agent's act. A principal must choose which parts of the agent's acts to ratify and which to reject. The principal must have some knowledge of all facts regarding the implied contract. An individual must misrepresent their identity as an agent for another party.
Which of the following statements is true when a partnership is dissolved?
Multiple Choice The remaining partners must continue the partnership. The remaining partners may choose to continue the partnership. The remaining partners must wind up the partnership. The remaining partners may continue the partnership, but only by filing revised articles of organization with the Secretary of State in the state where the majority of the remaining partners reside.
How is a principal classified if the third party is aware of the principal's existence but not his or her identity?
Multiple Choice Undisclosed Identified Fully disclosed Partially disclosed
Under the doctrine of respondeat superior, the principal/employer holds vicarious liability, which is best described by which of the following statements?
Multiple Choice Vicarious liability holds the agent and principal each 50% liable for any harm the agent/employee caused while working for the principal. Vicarious liability holds the agent liable for any harm the agent/employee caused while working for the principal. Vicarious liability holds the agent liable for any harm the agent/employee caused while working for the principal only if the principal is a disclosed principal. Vicarious liability holds the principal liable for any harm the agent/employee caused while working for the principal.
Agents who feel they are not being properly compensated may demand:
Multiple Choice an accounting. cooperation. payment. indemnification.
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Partially disclosed
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an accounting.
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at least one general partner and at least one limited partner.
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undisclosed.
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wrongful