,PART II
Test Bank
CHAPTER 1
Introduction to Agency and Business
Organizations ...................................................................
112
CHAPTER 2
Sole
Proprietorships ...................................................................
.................................................. 114
CHAPTER 3
Partnerships ......................................................................
........................................................... 116
CHAPTER 4
Limited
Partnerships ......................................................................
.............................................. 119
CHAPTER 5
Limited Liability Partnerships and Limited Liability Limited
Partnerships ................................ 121
CHAPTER 6
Limited Liability
Companies .........................................................................
.............................. 123
CHAPTER 7
Corporations ......................................................................
.......................................................... 125
CHAPTER 8
Incorporations ....................................................................
.......................................................... 127
CHAPTER 9
The Corporate
Organization ......................................................................
.................................. 129
CHAPTER 10
The Corporate Financial
Structure .........................................................................
...................... 131
CHAPTER 11
,Public Corporations and Securities
Regulations .......................................................................
... 133
CHAPTER 12
Mergers, Acquisitions, and Other Changes to the Corporate
Structure ....................................... 136
CHAPTER 13
Foreign Corporation
Qualification......................................................................
......................... 138
CHAPTER 14
Corporate
Dissolution .......................................................................
........................................... 140
CHAPTER 15
Employee Benefits and Employment
Agreements ......................................................................
142
111
©2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or
duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or
service or otherwise on a password-protected website for classroom use.
, CHAPTER 1
Introduction to Agency and Business Organizations
MULTIPLE CHOICE
C. the purported agent assumes personal liability for his or her actions.
D. an apparent agency may exist.
1. Agency is a legal relationship in which
A. the principal acts on behalf of the agent.
B. the principal becomes personally liable for
all actions of the agent.
C. a written contract must specify all authority
of the agent.
D. the agent acts for or represents the principal
by the principal’s authority.
ANS:
ANS:
6. An agent’s duties to the principal include
A. the duty of loyalty.
B. the duty to act without compensation.
C. the duty to perform any tasks requested by
the principal.
D. the duty to compensate the principal.
D
2. When used in relation to the agency relationship, the master
A. retains some control over his or her servant
(employee).
B. gives his or her servant (employee) full
discretion to act on the master’s behalf.
C. hires the employee for a specific task for
which the master is not responsible.
D. is not liable for any actions taken on his or
her behalf by the servant (employee).
ANS:
ANS:
A
ANS:
D
8. A principal is not liable for the torts of his or
her agent if the
A. tort is committed by the agent acting in the
scope of his or her employment by the
principal.
B. agent’s action is unrelated to the agency
relationship.
C. principal is negligent or reckless in supervising the agent.
D. agent is acting under the principal’s direction when committing the tort.
C
Test Bank
CHAPTER 1
Introduction to Agency and Business
Organizations ...................................................................
112
CHAPTER 2
Sole
Proprietorships ...................................................................
.................................................. 114
CHAPTER 3
Partnerships ......................................................................
........................................................... 116
CHAPTER 4
Limited
Partnerships ......................................................................
.............................................. 119
CHAPTER 5
Limited Liability Partnerships and Limited Liability Limited
Partnerships ................................ 121
CHAPTER 6
Limited Liability
Companies .........................................................................
.............................. 123
CHAPTER 7
Corporations ......................................................................
.......................................................... 125
CHAPTER 8
Incorporations ....................................................................
.......................................................... 127
CHAPTER 9
The Corporate
Organization ......................................................................
.................................. 129
CHAPTER 10
The Corporate Financial
Structure .........................................................................
...................... 131
CHAPTER 11
,Public Corporations and Securities
Regulations .......................................................................
... 133
CHAPTER 12
Mergers, Acquisitions, and Other Changes to the Corporate
Structure ....................................... 136
CHAPTER 13
Foreign Corporation
Qualification......................................................................
......................... 138
CHAPTER 14
Corporate
Dissolution .......................................................................
........................................... 140
CHAPTER 15
Employee Benefits and Employment
Agreements ......................................................................
142
111
©2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or
duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or
service or otherwise on a password-protected website for classroom use.
, CHAPTER 1
Introduction to Agency and Business Organizations
MULTIPLE CHOICE
C. the purported agent assumes personal liability for his or her actions.
D. an apparent agency may exist.
1. Agency is a legal relationship in which
A. the principal acts on behalf of the agent.
B. the principal becomes personally liable for
all actions of the agent.
C. a written contract must specify all authority
of the agent.
D. the agent acts for or represents the principal
by the principal’s authority.
ANS:
ANS:
6. An agent’s duties to the principal include
A. the duty of loyalty.
B. the duty to act without compensation.
C. the duty to perform any tasks requested by
the principal.
D. the duty to compensate the principal.
D
2. When used in relation to the agency relationship, the master
A. retains some control over his or her servant
(employee).
B. gives his or her servant (employee) full
discretion to act on the master’s behalf.
C. hires the employee for a specific task for
which the master is not responsible.
D. is not liable for any actions taken on his or
her behalf by the servant (employee).
ANS:
ANS:
A
ANS:
D
8. A principal is not liable for the torts of his or
her agent if the
A. tort is committed by the agent acting in the
scope of his or her employment by the
principal.
B. agent’s action is unrelated to the agency
relationship.
C. principal is negligent or reckless in supervising the agent.
D. agent is acting under the principal’s direction when committing the tort.
C
