1) Apparent authority may exist where there is no actual authority.
True
False
2) The agent ordinarily has the power to delegate authority to a subagent.
True
False
3) The law strives to balance the competing interests of principals and third persons.
a. True
b. False
4) If beneficiaries of a business trust participate in management or control, they will become personally liable for the obligations of the business.
True
False
5) Sole proprietors must file documents with the secretary of state in their state of residence to operate as a business.
True
False
6) Owners of some business forms have unlimited liability.
True
False
7) A dissociated partner does not have the power to bind the partnership to an agreement under any circumstances.
True
False
8) A partner who commits a tort or breach of trust must indemnify the partnership for any damages the partnership pays to the third party.
True
False
9) A partner is criminally liable for the crimes of other partners.
True
False
10) A limited partnership has both general and limited partners.
True
False
11) The Age Discrimination in Employment Act (ADEA) prevents an employer from favoring an older employee over a younger employee.
True
False
12) The common law covering employment relationships has been supplemented primarily be federal statutes.
True
False
13) The Civil Rights Act of 1991 limits the amount of damages that may be recovered based on racial discrimination.
True
False
14) Employers may discriminate under Federal Law based on which sports team an applicant supports.
True
False
15) Once a Chapter 7 case if filed, a court cannot dismiss the action.
True
False
16) The Bankruptcy Code grants to the state courts exclusive jurisdiction over all bankruptcy cases.
True
False
Multiple Choice
17 ) Limited partnerships are an attractive form of business because:
a) of the tax advantages.
b) partners are not personally liable for debts of the business.
c) of the ease of formation.
d) of both the tax advantages and the fact that partners are not personally liable for debts of the business.
18) Which of the following is true regarding foreign limited liability companies?
a) The laws of the state in which the foreign LLC is doing business, and not the one in which it was formed, govern the liability of its members and managers.14 days
b) A limited liability company is considered foreign in any other state than the one in which it was formed.
c) A foreign LLC that has not registered with the secretary of state in a state in which it is doing business cannot defend itself against lawsuits in that state's courts.
d) All of these are true.
19) Corporate attributes include all of the following except:
a) limited liability.
b) existence as a separate legal entity.
c) decentralized management.
d) free transferability of corporate shares.
20) Corporate attributes include all of the following except:
a) limited liability
b) existence as a separate legal entity
c) decentralized management
d) free transferability of corporate shares
21) A person who agrees to purchase stock in a corporation is:
a) an incorporator
b) subscriber
c) corporate promoter
d) stockholder
22) The enforcement rights of shareholders include which of the following?
a) indirect suits
b) selection and removal of officers
c) direct suits
d) all of these
23) Which of the following are not dischargeable in bankruptcy?
a) Debts not scheduled, unless the creditor knew of the bankruptcy
b) Legal liability for willful and malicious injuries to the person or property of another.
c) Student loans unless excepting the debt would impose undue hardship.
d) All of these.
24) Ratification:
a) is the confirmation or affirmation by the principal of the unauthorized act of the agent.
b) binds the principal.
c) is irrevocable, if valid.
d) all of these are true statements regarding ratification.
25) Shareholder approval is required for extraordinary matter involving fundamental changes. What is included in the category of extraordinary matters?
a) Amendments to the articles of incorporation
b) Compulsory share exchanges
c) Dissolution
d) All of these