1) Casablanca Restaurant purchased a commercial oven from Leo Nguyen. Leo agreed to deliver and install the oven.

Leo hired Chuck Smoffett, who owns his own appliance installation business, to deliver and install the oven.

In this scenario, Chuck is ________.

Multiple Choice

• an agent

• a principal

• neither

2) Leo sold Casablanca Restaurant the commercial oven on credit, therefore, Leo has a _________ security interest in the commercial oven.

Multiple Choice

• money-owed

• unsecured

• purchase-money

• illusory

3) Gilbert Heller owns and operates an auto repair business as a sole proprietor. He is the only investor in the business. He has the authority to make all business decisions regarding the company.

Gilbert delegates some decision-making to his office manager, Travis. Travis is responsible for ordering inventory and interviewing job applicants. The business currently has 15 employees, including Travis.

In this scenario, Gilbert Heller is ________.

Multiple Choice

• an agent

• a principal

• an employee

• a corporate shareholder

4) Danny Martinez and Vira Patel co-own a landscape design and installation business. They divide profits and management responsibilities and share unlimited personal liability for the partnership's debts.

Their business organization is a __________.

Multiple Choice

• general partnership

• limited partnership

• corporation

• limited liability company

5) George is employed by Spark Electric Services. One of Spark's customers asks George the cost to install a new electrical breaker box. George tells the customer that Spark charges $2500 for the installation, but he can do it on the weekend for $1500.

George is violation the duty of ________.

Multiple Choice

• information

• loyalty

• accounting

• reimbursement