21. It is impossible to form a business in a manner that allows for single taxation and limited liability.

a. True

b. False

22. When a principal dies, the agency is not terminated until the agent is notified of the principal's death.

a. True

b. False

23. A majority action of partners is not binding if it contravenes the partnership agreement.

a. True

b. False

24. A joint venture typically relates to the carrying out of a single enterprise or transaction.

a. True

b. False

25. The names of limited partners and investors must be included on the certificate of limited partnership.

a. True

b. False

26. The rights of partners are determined by the partnership agreement, which must be written to comply with the statute of frauds

a. True

b. False

27. A sole proprietor must file a certificate with the state and pay a single organizational fee.

a. True

b. False

28. Corporations may avoid liability for the obligations of a predecessor corporation by treating a consolidation or merger as a sale of assets.

a. True

b. False

29. Partnership agreements allow individuals to conduct their business without the requirement of a formal organizational structure.

a. True

b. False

30. LLC promoters can 'shake hands' and form an LLC.

a. True

b. False

31. Limited partners may sue their partnership's general partner to protect the limited partners' interest.

a. True

b. False

32. Parol evidence is allowed to show whether an agent has signed in a representative or an individual capacity.

a. True

b. False

33. An innocent party to an anticipatory repudiation of a contract has the right to treat the repudiation as a present, material breach and may file suit. a. True

b. False

34. Subchapter S corporations have the benefits of limited liability as in partnerships and are taxed as corporations.

a. True

b. False

35. Both general partnerships and limited partnerships are created only through the process of executing a certificate.

a. True

b. False

36. In some cases the court may require specific performance, whereby the court will order the contractual performance to be carried out.

a. True

b. False

37. Franchisors may be found liable for the wrongful conduct of their franchisees on an apparent authority theory when the conduct of the franchisor creates an appearance of authority.

a. True

b. False

38. A de facto corporation is not accorded legal recognition due to some recognized defect in its incorporation.

a. True

b. False

39. The liability of a buyer for the purchase price of goods is terminated by the fact that the buyer gave the buyer's agent the purchase price to remit to the seller.

a. True

b. False

40. The rule of law imposing vicarious liability on an innocent employer for the wrong of an employee is known as the doctrine of respondeat superior.

a. True

b. False