MGMT 254 Final Exam Purdue FULL ACTUAL EXAM
STUDYGUIDE LATEST VERSION 2026/2027 (Q&A)
INSTANT PDF DOWNLOAD
competing with the principal
prohibited, no competition allowed
principals duties
duty of:
-compensation
-reimbursement (paid back)
-indemnification (reimburse for any losses agent may suffer)
-cooperation (cooperate w agent, don't interfere w their duties)
-provide safe working conditions
fiduciary
person acting with care
termination
-mutual agreement
-lapse of reasonable time
-purpose achieved
-occurrence of a specific event
-operation of law:
----death, insanity, bankruptcy
termination: NOTICE TO THE THIRD PARTIES
-people who dealt w agent (actual notice)
-knowledge of agency (constructive notice)
types of liability to third parties
-fully disclosed agency
-partially disclosed agency
-undisclosed agency
, fully disclosed agency
-3rd party knows the agent is acting as an agent for a principal
-identity of principal
-principal is liable
-agent is not liable
partially disclosed agency
-agent reveals he has a principal
-principal + agent liable
undisclosed agency
agent pretends to be acting for himself
tort liability/ vicarious liability
respondent superior
-nature of an act
-act must be committed in the "course of employment"
fraud vs. negligent act vs. intentional act
sole proprietorship
most common business entity in the U.S.
sole proprietorship pros
-no organizational fees
-have absolute control
-retain profits
-taxes
sole proprietorship cons
-unlimited liability
-limited investment capital
-termination at death
General partnership
-contractual relationship
-if no written agreement, then every state has a partnership statute to fill in the blanks
-2+ people
STUDYGUIDE LATEST VERSION 2026/2027 (Q&A)
INSTANT PDF DOWNLOAD
competing with the principal
prohibited, no competition allowed
principals duties
duty of:
-compensation
-reimbursement (paid back)
-indemnification (reimburse for any losses agent may suffer)
-cooperation (cooperate w agent, don't interfere w their duties)
-provide safe working conditions
fiduciary
person acting with care
termination
-mutual agreement
-lapse of reasonable time
-purpose achieved
-occurrence of a specific event
-operation of law:
----death, insanity, bankruptcy
termination: NOTICE TO THE THIRD PARTIES
-people who dealt w agent (actual notice)
-knowledge of agency (constructive notice)
types of liability to third parties
-fully disclosed agency
-partially disclosed agency
-undisclosed agency
, fully disclosed agency
-3rd party knows the agent is acting as an agent for a principal
-identity of principal
-principal is liable
-agent is not liable
partially disclosed agency
-agent reveals he has a principal
-principal + agent liable
undisclosed agency
agent pretends to be acting for himself
tort liability/ vicarious liability
respondent superior
-nature of an act
-act must be committed in the "course of employment"
fraud vs. negligent act vs. intentional act
sole proprietorship
most common business entity in the U.S.
sole proprietorship pros
-no organizational fees
-have absolute control
-retain profits
-taxes
sole proprietorship cons
-unlimited liability
-limited investment capital
-termination at death
General partnership
-contractual relationship
-if no written agreement, then every state has a partnership statute to fill in the blanks
-2+ people
