1) Which of the following is not one of the ways in which an agency relationship can be created

Question 1 options:

	Estoppel
	Election
	Necessity
	Ratification

2)

An agent can act for both the principal and a third party without the consent of both

Question 2 options:

True

False

3)

Question 3 (1 point)

Which of the following is a business organisation that is a separate legal entity from its owners, the shareholders

Question 3 options:

Sole proprietorship

Corporation

Partnership

The Crown

4)

Question 4 (1 point)

4) Which of the following is true with regard to the characteristics of corporations?

Question 4 options:

Shareholders, are liable for the debts and other obligations of the corporation

The corporation is a separate legal entity which cannot sue nor be sued

A shareholder's liability is limited to the amount he or she paid for the shares

The shareholders would be vicariously liable for any damage caused by an employee of the corporation carrying out his or her duties

5) In a Partnership, partners are liable for each other's acts

Question 5 options:

	True
	False

6) Usually, a ___________ will bear a promise to pay a specific dividend each year, if declared by the corporation

Question 6 options:

	Bond
	Common share
	Preferred share
	Debenture

7) In a Corporation which of the following groups elect the Board of Directors

Question 7 options:

	Officers
	Shareholders
	Employees
	Directors

8)

Which of the following is not an advantage of incorporation

Question 8 options:

Limited liability

More expensive than other forms of business

Tax advantages may be gained

Corporation does not die

9)

When a Partnership is dissolved, debts are first paid out of which of the following

Question 9 options:

Profits

Capital

Personal assets of partners

None of the above

10)

Which of the following is not a responsibility of an agent to his/her principal:

Question 10 options:

Agent must turn money over to the principal

Agent must not disclose all relevant information

Agent must not compete with the principal

Agent must not delegate responsibility under the agency agreement to another

11)

Which of the following is a violation of the fiduciary duty of a partner

Question 11 options:

Where one partner carries on a business unrelated to the partnership with the permission of the partners

When one partner starts another business without the consent of the other partners which is the same as or in competition with the partnership business

Where a partner uses the partnership property for partnership business

Where one partner uses information that he has gained from the partnership for the advantage of the partnership

12)

A sole proprietor is liable for all debts of the business

Question 12 options:

	True
	False