Hiring an Attorney

Group 4 questions

QUESTION 1.1

Disclosure

Choose one 1 point

The following 3 questions will rely on the following fact scenario. Mark gets in a dispute with his business partner, Jack, and decides that he needs to sue him.

When first meeting with the attorney, Mark is hesitant to tell the attorney that he has been doing sales on the side and has been pocketing the money without telling Jack. Mark should keep this information from the attorney because it makes him look bad.

True

False

QUESTION 1.2

Contingency Fee

Choose one 1 point

Because there are a lot of assets at stake and the attorney thinks Mark has a good case against Jack, the attorney agrees to take the case on a contingency fee basis. This means that:

Mark must pay the attorney hourly for the attorney's work.

The attorney will take a portion of the final settlement or award as attorneys' fees..

Mark will pay one set amount that will cover all of the attorneys' fees for the entire matter.

QUESTION 1.3

Attorney/Client Privilege

Choose one 1 point

Mark advises his attorney that, in addition to doing some side business without Jack's knowledge, he killed his neighbor and buried him in the backyard of the business. The attorney must:

Report this information to the authorities immediately.

Keep this information confidential.

QUESTION 1.4

Attorneys' Fees

Choose one 1 point

The following are all types of fees charged by attorneysexcept?

Flat fee

Bulk fee

Hourly fee

Contingency fee

QUESTION 2

Key Relationships

Choose one 1 point

It is often necessary or desirable for a person or firm to be represented by another in business or personal dealings with third parties. This relationship is called a(n):

Employer-employee relationship

Title-agency relationship

Principal-agency relationship

QUESTION 3

Agents

Choose one 1 point

A person who is given the authority to act only in a particular kind of transaction, under definite instructions, and with specific limits on the scope of his or her authority, is called a:

General agent

Special agent

Super agent

QUESTION 4

Agent Authority

Choose one 1 point

The authority that has actually been given by the principal, either orally or in writing, is known as:

Forbidden authority

Implied authority

Express authority

QUESTION 5

Agent Authority

Choose one 1 point

The authority that a third party may reasonably assume an agent possesses despite the fact that the agent may not actually possess such authority is known as:

Unlawful authority

Ultra vires authority

Apparent authority

QUESTION 6

Agency Contract

Choose one 1 point

An example of an agency contract where a person may designate someone to make medical and/or financial decisions on their behalf if he/she becomes unableis a:

Power of Attorney

Partnership agreement

Work for Hire agreement

QUESTION 7

Business Organizations

Choose one 1 point

All of the following are types of business structures discussed in the readingsexcept:

Sole proprietorship

Dual proprietorship

Limited liability company

Corporation

QUESTION 8

Business Organizations

Choose one 1 point

The owner of a sole proprietorship has _____________ authority to run his/her business.

Partial

Complete

Some

No

QUESTION 9

Business Organizations

Choose one 1 point

In a sole proprietorship, the owner has ____________ liability for all the debts and obligationsof the business.

Limited

Some

Complete

No

QUESTION 10

Business Organizations

Choose one 1 point

Partnerships are businesses owned and operated by ___________.

One person

Two or more people

QUESTION 11

Business Organizations

Choose one 1 point

All of the following organizational forms provide limited liability to the owners/members of the businessexcept:

Sole proprietorship

Corporation

Limited liability company

Limited partnership

QUESTION 12

Business Organizations

Choose one 1 point

In order to maintain his/her limited liability status in a partnership, a limited partner mustnot:

Sign a proxy

Participate in the overall management and decision making of the business

Contribute financially to the business

QUESTION 13

Business Organizations

Choose one 1 point

Drafting up a Partnership Agreement will give partners guidance for how to handle disputes that arise down the road.

True

False

QUESTION 14

Business Organizations

Choose one 1 point

Which of the following is adifferencebetween an S Corporation and a C Corporation:

A C Corporation is required to pay taxes itself on the business while an S Corporation can use pass through taxation.

A C Corporation is required to file Articles of Incorporation with the state and an S Corporation is not.

A C Corporation has shareholders and an S Corporation does not.

QUESTION 15

Business Organizations

Choose one 1 point

The obligation of an LLC member or a director or officer of a corporation to act in the best interest of the company as well as the other members/shareholders is called a:

Fiduciary duty

Personal duty

Financial duty

QUESTION 16

Business Organizations

Choose one 1 point

The document that lists the general powers of a Limited Liability Company is called the:

Memorandum of hierarchy

Articles of Organization

Articles of Incorporation

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