BUS 202

Which statement is accurate?

1.All employees are agents, but not all agents are employees.

Cashing a check that says "payment in full" will stop the person from collecting more, even if the amount owed is disputed.

1.True. If there is a dispute, don't cash the check!

•Adam owns 50% of the ABC partnership. Bob and Charlie each own 25%. The partners have not entered into a written agreement regarding their right to partnership distributions or their obligation for partnership debts. •Adam and Charlie made a poor business decision that left the partnership $60,000 in debt. Bob decides to leave the partnership. •Bob claims he is responsible for 25% of the debt ($15,000). •Charlie claims Bob is responsible for 33% of the debt ($20,000).Which of the partners is correct?

A.Charlie is correct. There is no agreement, so the partners share in the loss equally.

If the partnership dissolves, it is immediately terminated.

A.False. There is a step between dissolution and termination.

Cumulative voting means:

A.One vote per share x the number of board members to be elected

An at-will employee can be fired for which of the following reasons?

A.She's an Idaho Vandal who works on a team of Bronco Boosters B.He looks like this: 1 or 2 only

While driving a truck for AAA Co.(within the scope of employment) Vic causes an accident and injures Wendy. Wendy can recover from:

AAA and/or Vic

Adam is a partner in the ABC partnership. He owes a fiduciary duty to:

Both the ABC partnership and Bob and Charlie.

Contract duties may be:

Delegated

ABC Partnership has no agreement on how profits and losses will be divided. Adam invested 50% of the partnership start-up $$. Bob & Charlie each invested 25%.

Each partner will receive 33% of the profits.

An agent always has the right to withdraw her consent and terminate the agency relationship

False

Idaho is a right-to-work state. This means generally that employees can be fired for any reason.

False

Shareholders always have limited liability.

False

Acceptance of an offer:

Is determined when acceptance is sent

The Statute of Frauds means that:

Some contracts have to be in writing or they are not enforceable

I promise to pay you $2000 if you promise to have my bathroom remodeled by the 1st day of school

This would be a bilateral contract

Tom sold ad space for Boise Magazine for three years. Two days after he's laid off, he sells a 5" ad to Chronic Taco, an existing customer, who does not know he was fired.

Tom had authority to sell the ad. Why?

A principal will be liable for:

Torts of an employee

Bob, a partner of XYZ Partnership, injures David while doing partnership business. XYZ is liable to David because of Bob's tort.

True

Sam, another partner in XYZ partnership, is personally liable to David because of Bob's tort.

True

Promoters will be personally liable for contracts entered into on behalf of the corporation.

True, unless or until the corporation adopts the contracts