The question:

Question 25 (Mandatory) (2 points) Frank is a partner in the Masterbuilders partnership. The partnership agreement provides that no partner may withdraw from the partnership for 10 years. Frank attempts to withdraw from the partnership before the 10 year period is up. Which of the following statements best describes this situation? a) Because Frank could not withdraw from the partnership there is no dissolution. O b) This is a wrongful dissolution; the partnership will be dissolved, but Frank will be liable for any damages caused by it. OC) Frank can withdraw, but only if the gives adequate notice to third parties who might be affected. (d) This clause of the partnership agreement is unenforceable, thus the dissolution is proper.Question 26 (Mandatory) (2 points) An agent is distinguished from an ordinary employee (servant) in that employees(servants) are hired to represent the employer in dealings with third persons. O True O False Question 27 (Mandatory) (2 points) Gloria can be held liable for any negligence her agent committed during the time that the agent has agreed to act as agent. O True O FalseQuestion 28 (Mandatory) (2 points) A foreign corporation is one that: a) is incorporated in another state other than this state. b) is incorporated in this state, but does business in other states. is incorporated in another country. O d) is incorporated in this state, butdoes business on other nations.Question 29 (Mandatory) (2 points) The dissolution and winding up of a limited partnership is governed by the same principles applicable to a: a) "Subchapter S" corporation. Ob) limited liability company. O c) general partnership. O d) none of the above. Question 30 (Mandatory) (2 points) Agency relationships are formed by the mutual consent of a principal and agent. True O FalseQuestion 31 (Mandatory) (2 points) A corporation's express powers are only those powers granted to it in its articles of incorporation. O True False Question 32 (Mandatory) (2 points) Creditors may recover claims against the business from the sole proprietor's personal assets. True False Question 33 (Mandatory) (2 points) If the principal labels someone an "independent contractor," then that is conclusive as to whether that person is actually an independent contractor. True FalseQuestion 34 (Mandatory) (2 points) Which of the following is not required to qualify as a partnership? O a) The sharing of profits. (b) Co-ownership of the business. c) Equal investment of effort and capital. d) An association of two or more pursons.Question 35 (Mandatory) (2 points) Under what circumstances is a proprietorship required to file a fictitious business name statement in most statements? a) Only when requested by the office of the secretary of state. b) When the business is operated under a trade name rather than under the name of the proprietor. Oc) Any time that there is a change in the name of the business. O d) Any time that the business is sold by one proprietor to another.Question 36 (Mandatory) (2 points) It is acceptable to pay an agent on a contingent fee basis such that the agent is compensated only if the agent successfully accomplishes a certain result, even though the agent might have put in considerable effort. True False Question 37 (Mandatory) (2 points) The shareholders of a corporation are not personally liable for the debts of that corporation. True O False Question 38 (Mandatory) (2 points) Agency is a relationship by which the principal is authorized to act on behalf of an agent in negotiating and making contracts with third persons. True FalseQuestion 39 (Mandatory) (2 points) Which of the following statements is true concerning the notice that should be given to third parties upon the dissolution of a partnership? (a) Third parties who have dealt with the partnership must receive constructive notice. (b) Third parties who have not dealt with the partnership, but who know of its existence, must receive constructive notice. c) All third parties need to receive constructive notice only. O d) All third parties must receive adchal notice. Question 40 (Mandatory) (2 points) A principal is always liable for the torts of independent contractors. True O FalseQuestion 41 (Mandatory) (2 points) Under what circumstances is an agent liable for a tort committed by the principal? a) When the agent ratifies the action. O b) When the tort was committed within the scope of the agency. C) When the agent aided or abetted the principal's tortious conduct. Od) When the agency is undisclosed.Question 42 (Mandatory) (2 points) What is true about a partner's right to participate in the management of the partnership? a) It exists automatically, but can be eliminated in the partnership agreement. (b) It exists only if the partner has been elected as an officer or management committee member. (c) It exists only if the partnership agreement gives the partner this right. d) One person must be elected as a managing partner to manage the business.Question 43 (Mandatory) (2 points) Julie, who owns a computer repair business, entered into an agreement with Office Supply Store that provided that James, her agent, can buy office supplies on her behalf. Later, because she decides he is incompetent, Julie fires James. Julie does not inform anyone at Office Supply Store that James's agency is terminated. Immediately after he is fired, James goes to Office Supply Store, buys $500 in goods, charges it to Julie, and leaves town. Which of the following is true? (a) The termination of the agency extinguished James's apparent authority to act on behalf of Julie. b) The failure to provide notice to Office Supply Store of the termination of the agency left James with apparent authority to bind Julie. c) Both A and C. d) The termination of the agency extinguished James's actual authority to act on behalf of Julie.Question 46 (Mandatory) (2 points) Matt operates an auto parts shop as a sole proprietor under the name of "You Want It We've Got It Auto Parts". The shop has gone out of business, and all the assets have been sold. The following debts remain: 1. $10,000 owed to suppliers for merchandise that was sold to customers. 2. $20,000 owed to suppliers for merchandise that was ruined in an unexpected flood. 3. $35,000 owed to a customer who has a final judgment in a liability lawsuit against the auto parts shop. For which of these debts can Matt be held personally liable? Oa) 1 only. O b) 2 and 3 only. Oc) None, they were all business debts. O d) 1, 2, and 3.Question 44 (Mandatory) (2 points) The City of West Lafayette has formed a separate corporation to operate the sewer system for the city. This corporation is best described as what type of corporation? a) Nonprofit. O b) Closely held. O c) Private. O d) Public Benefit.. Question 45 (Mandatory) (2 points) A close corporation is a corporation that operates only within its state of incorporation. True O FalseQuestion 47 (Mandatory) (2 points) Freedom from liability to third persons dealing with the franchise holder is one of the main reasons that franchisors grant franchises. True False Question 48 (Mandatory) (2 points) Once a partnership is dissolved, all liability for the actions of partners ends. True O False Question 49 (Mandatory) (2 points) Undisclosed agencies are unlawful. True FalseQuestion 50 (Mandatory) (2 points) In an agency relationship the doctrine of imputed knowledge assumes that information that comes to the attention of the agent is immediately known by the principal. O True O False