QUESTION 1

If an agent breaches his duty to his principal, his principal can sue the agent successfully for:

1. a.breach of warranty of authority.
2. b.breach of the agency agreement.
3. c.breach of agency act.
4. d.wrongful representation.

1 points

QUESTION 2

1. An agency relationship can be created by(chose the best answer):
2. a.Actual authority
3. b.Estoppel
4. c.Ratification
5. d.All of the above.

1 points

QUESTION 3

1. Which of the following is correct with respect to an agent's performance of his/her/their duties?

1. a.The agent must never take advantage of the third party.
2. b.The agent must never compete with the principal.

1. c.The principal need not reimburse the agent for reasonable expects incurred as a result of the agency service.
2. d.The agent need not disclose all information which may benefit the principal.

1 points

QUESTION 4

Which one of the following is correct with respect to sole proprietorships?

1. a.The sole proprietor has limited liability.
2. b.The sole proprietor need not adhere to any licensing and government regulations.
3. c.The sole proprietor must consult with other owners before making major decisions regarding the business.
4. d.The sole proprietor may be responsible for torts committed by employees during the scope of their employment as the sole proprietorship.

1 points

QUESTION 5

Which of the following is correct with respect to rights of partners in a partnership unless they have agreed to otherwise?

1. a.All ppersonal expenses not related to the business incurred by the partners in the course of business are reimbursed.
2. b.Partners that have contributed the largest capital amount are the only ones who have a right to share in the management.
3. c.A major decision can be taken without a majority vote agreement of all the partners.
4. d.All profits are shared equally between the partners.

1 points

QUESTION 6

Which of the following is correct with respect to the agency relationship?

1. a.Agents are those who act on behalf of others but are never employees.
2. b.The agency relationship in all cases must be created by written contract.
3. c.For an agency contract to be valid it must be in writing.
4. d.One example of an agency agreement in writing under sealis a Power of Attorney for Personal Care.

1 points

QUESTION 7

Which of the following is considered a separate legal person in law?

1. a.Sole proprietorship
2. b.Partnership
3. c.Corporation
4. d.LLP

1 points

QUESTION 8

A partnership is primarily a contractual relationship and can be created verbally or implied from conduct.

1. a.True
2. b.False

1 points

QUESTION 9

Which of the following is a fiduciary relationship?

1. a.Agent and the third party.
2. b.Shareholders and the corporation.
3. c.Directors of the corporation and the corporation.
4. d.Directors of the corporation and the shareholders.

1 points

QUESTION 10

Which of the following is NOT an advantage of the corporation?

1. a.Shares are easily transferred.
2. b.Tax advantages.
3. c.Shareholders can veto decisions of directors.
4. d.Shareholders have no duty to the corporation.