7) Does the president of a corporation that produces movies have the authority to enter into a contract on behalf of the corporation with a famous actress to star in a movie for the payment of 3 million dollars plus 2 percent of the net profit from the movie? Base your answer on the general rule assuming that the president has not been given the express authority to enter into the contract. Explain. (Limit your answer to three sentences.) 5

8) Part One: Define what treasury stock is. (Limit your answer to one sentence.)

Part Two: Explain why a shareholder of one share of Disney common stock is not entitled to an annual dividend equal to the amount of the earnings per share of Disney. (Limit your answer to one sentence.) 5

9) Assuming there is no express agreement amongst the partners in a general partnership that permits or prohibits a partner from entering into a contract on behalf of the partnership, explain what type of contract a partner may enter into as the agent of the partnership with respect to the firms business. (Limit your answer to two sentences.) 5