Term
| Which of the following is not required of an agency relationship? |
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Definition
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Term
| The equal dinities rule relative to agency law applies to an agent |
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Definition
| hired to sell the contract, selling real estate, and authorized to enter into a 2 year lease for her principal |
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Term
| Mohammed was an employee in the new product for a company. He intended to stay with the company for 6 months, after their new product was luanched. If he leaves the comapny and goes to a competitor, can he share the information? |
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Definition
| Mohammed cannot share the information regarding the comapnies new product to the new competitor taht he works for. He has a duty not to disclose confidential information he acquired in his previous agency |
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Term
| An angency can be created |
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Definition
| by the conduct of the parties |
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Term
| Ron is the business manager for 2 bands. He gets them a deal to both play after a football game for 200,000. Instead, he wants to make more money, and gets a deal for one band to play for 175000. Has he violated his duty as the agent? |
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Definition
| Yes. Ron put his own personal interests ahead of his principal interest |
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Term
| John hired Tim to sell his house |
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Definition
| John is the principal, Tim is the agent |
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Term
| The doctrine of estoppel would most liekly occur in situatiuons of |
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Definition
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Term
| Jim accidentally wrote a false statement about maureen that was published. It upset her and she sues. Cameron, who read and published the story |
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Definition
| Must idemnify Jim for Maureens claim |
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Term
| Pamela hired Lena to sell her business. Lena: |
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Definition
| can buy the business only with Pamela's permission |
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Term
| Chance is a traveling market representative for a publishing company. He is an independent contractor. One afternnon he negiglently runs a stop sign and causes an accident. Judy is injured. Judy can: |
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Definition
| hold chance, but not the company liable |
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Term
| O leary hired Jenna to sell her house in Michigan. She executed a power of authority in favor of Jenna to do anyting and everything associated with the sale of the real estate, acting as a prudent person. On may 30, Jenna finalized a deal with Brandon. Brandon and Jenna signed the contract that day. Jenna learned that O leary died My 29 |
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Definition
| The contract is void since the agency terminated May 29 |
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Term
| Jim agrred to show Donnas car to a potential buyer. Donna was not able to be home since she had to attend a meeting. After hsowing the car, Jim left the keys in the car and it was stolen. |
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Definition
| Since Jim is a gratuitious agent, he will only be liable for the loss of the car if his conduct is gross negligence |
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Term
| Tom, the production manager at Edsay, was told by his superior to hire Elton, a 15 year old to operate a industrial machine. Hiring the under age kid, Tom... |
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Definition
| should not hire elton. Tom has a duty to obeyEsdays instructions as long as they are both legal and ethical |
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Term
| If the agent is disloyal to the principal |
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Definition
| The agency terminates and the principal may rescind, the principal has the right to collect any actual damages sustiained, the principal can recover any profits earned as a result of his agents disloyal conduct |
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Term
| Linda borrowed 2500 from Tonya. They agreed that Tonya could take a grouping of Lindas antiques as collateral. If Linda could not pay, then Tonya could sell the antiques to recover her money. When Linda couldn't pay off the loan, Tonya sold the antiques and paid Linda the proceeds after deducting the balance. |
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Definition
| This is an irrevocable agency relationship, a power coupled with interest, and Linda doesn't have the right to terminate the relationship. |
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Term
| HBR accounting firm hired Denise, a CPA, to prepare tax returns |
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Definition
| Denise, as a CPA agent, is an agent with special skills. She is held to a higher duty than ordinary negiligence. |
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Term
| Express authoirity can be created by |
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Definition
| Words spoken directly to the agent, conduct, or written words given to one person to give to another person, the agent.(all the above) |
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Term
| Circus Pizza is contracted with Art to run its Birthday parties. Art's responsibilities including supervising the children and organizing the games. Circus didnt investigate Art's background, which included a history of assaulting children. Art assaulted a 7 year old girl in the kitchen during a party. Circus Pizza... |
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Definition
| May be held liable on the basis of negiglent hiring. |
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Term
| When a principal is partially disclosed |
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Definition
| The agent and the principal will be jointly and severally liable on the contract |
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Term
| Debra and Lawrence have an equal partnership, After expenses, the partnership had a profit of 200000. THey will each pay taxes on |
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Definition
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Term
| All the business forms listed below have limited liability except the |
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Definition
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Term
| Rachel and Cydni started a business called Zebra Toy COmpany. The business is operated as a partnership. Under the partnership they have |
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Definition
| Rachel is liable for contracts entered into by cydni, Rachel is liable for any debt, regardless as to who created the obligation. and Rachel is personally liable for any negligent act commited by cydni in the scope of the business activity. (all the above) |
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Term
| 70 farmers in Morgan County joined together to take advantage of purchasing fertilizer in bulk and having better prices when distributing and selling their crops. These famers have created a |
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Definition
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Term
| The business form that is taxed as a partnership and gives all owners limited liability is |
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Definition
| limited liability company |
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Term
| All of the following are charachteristics of a closely held corporation except |
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Definition
| The shares that are publicly traded |
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Term
| The corporate form of business |
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Definition
| was first known and used by the Greeks and then spread to the romans |
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Term
| What Federal agency reqiures that the seller of a franchise give the potnetial buyer an offerinf circular and audited financial statements? |
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Definition
| The Federal Trade Commison(FTC) |
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Term
| Harold and zack have pooled there money togehter to buy real estate but have filed no formal papers to form a business. Harold the buyer handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. They have engaged in a |
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Definition
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Term
| LLCs have become more popular for all of the following except |
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Definition
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Term
| Charles and Ellen an unmarried couple run a ice cream store. The business is not incorpated and they have filed no formation papers with the state. The business is |
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Definition
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Term
| EI james is the wirter with a best selling novel . he wishes to have an incorporation called "James Inc" He will be the only shareholder. Can he incorporate his business of writing? |
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Definition
| Yes. This would be the incorporation of a sole propoertorship |
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Term
| martin, leah, and pablo are considering opening a business. What factors should they consider? |
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Definition
| Ease of creation, liability, and taxes. (all of the above) |
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Term
| Charles and Becky are partners. If they have a disagreement , the UPA will govern their respective rights with eachother |
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Definition
| only if they do not have a written partneership agreement that addresses the issue of dispute. |
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Term
| A partnership is the association of two or more persons to carry on as co owners of a business for profit, the association |
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Definition
| means a voluntary relationship between the persons. |
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Term
| Jackie and robert own an apartment building as partners. Cydni, one of thier tenants gives robert a written notce that she will be moving out. Robert didnt tell jackie. Has cydni given proper notice? |
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Definition
| Yes. NOtice to Robert was notice to the partnership. |
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Term
| Which of the following events occurs first with respect to ending a partnership |
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Definition
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Term
| Theresea and Bobby bought a racecar togehter. They agreed to share all expenses and split net profits equally. There was no agreement as to the duration of the partnership. After a year, Bobbi decided she was tired and left. Bobbi din't violate the partnership agreement. Theresea says thats not allowed. Is she correct? |
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Definition
| No. In a partnership at will, a partner has the right to leave the parntership at any time. |
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Term
| Art and Alma make capital contributions of 60 and 40 respectively to their newly formed partnership . They didnt have a written agreement. At the end of the year, the partnership made a profit and Alma claims half. Art says he deserves 60. |
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Definition
| Alms as the UPA provides that profits are split equally unless the partners agree otherwise. |
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Term
| Sandy, Ramon and Bonnie were partners. Sandy dissociated. There was a 50000 debt when she left. |
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Definition
| Sandy remains liable on the 50000 |
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Term
| At what stage are the partnership debts paid and the proceeds distributed to the partners |
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Definition
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Term
| A group of accounting alumni decided to hold a fundraiser to establish to establish a scholarship for an accounting student. This enterprise is |
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Definition
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Term
| If Kay, a partner is an auction business and has a personal creditor who is aggressive about colelcting the debt |
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Definition
| The creditor cannot attach the partnership property to pay off the debt |
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Term
| Gary and Herman are partners in a lawn mower repair business in Ohio. While Gary is on vacation, visiting his sister down in Georgia, his sisters neighbor has trouble with the lawn mower and Gary fixes that shit. she wants to pay him. Gary: |
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Definition
| Must turn the money over to the partnership becasue he earned it on doing work int the same kind of work the partnership does |
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Term
| Lori and Dan own a restaurant together. Dan works several hours a day doing things that are similar to what the employees would do. He thinks that he should be paid more as a worker. Lori says that he isnt entitled. is she right? |
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Definition
| Yes. as there is no agreement between the two allowing them to be paid wages for work done in the restaurant |
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Term
| Randy, Joan and Arnie are partners. The agreement didn't address dissociation nor how long the partnership would last. Randy decided to leave the partnership. When Randy serves notice he intends to withdraw: |
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Definition
| The partnership can either buy him out and continue in business or wind up the business and terminate the partnership |
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Term
| Debbie is a pernter with Adam and Martyr. She sells her interest in the partnership to Craig. Which Statement is correct? |
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Definition
| Adam and martyr must approve the sal for Craig to become a full partner |
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Term
| Dusty dissociated from a partnership. To protct himself after he leaves, Dusty should |
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Definition
| File a statement of dissociation with the secretary of state |
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Term
| Ending a partnership involves which of the following three steps? |
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Definition
| Dissolution, winding up, and termination |
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Term
| Nancy was a partner of a small business. She knew that it was going to fail. she asked that the court require the partnership to dissolve since she did not have a legal right to withdrw at that time. Does a court have the authority to order a partnership to dissolve? |
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Definition
| Yes. A court can dissolve a partnership when it is convinced that the partnership is unlikely to succeed. |
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Term
| Astrid and Razi fomred a partnership in which they agree to share profits 60 and 40. Losses will be shared |
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Definition
| 60/40 unless otherwise agreed |
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Term
| Laurie is incorporating her business. Home state is Wisconsin. Business will be conducted in California, Michigan, Pennsylvania and Virgina. Laurie |
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Definition
| Can incorporate the business in any state. |
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Term
| a corporate charter is filed with |
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Definition
| a states secretary of state office |
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Term
| Repurchased stock is called |
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Definition
|
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Term
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Definition
| Designed to prevent dilution of shareholdrs ownership in the company |
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Term
| Defining a corporation with such information as the corporate name, the number and type of authorized shares of stock, identification of the purpose and the agent is done through the |
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Definition
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Term
| Once a provision is in the corporate charter, it an only be changed by |
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Definition
| Both of the above are necesary. A vote of the shareholfers and filing an amendment with the secretary of state |
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Term
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Definition
| shareholders against personal liability for the debts of the company |
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Term
| Can an outsider claim that company has committed an illegal act if they vote to change a policy that would put her up on the board? |
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Definition
| No. Under the model act, regardess of the companies motives, it had the right to act as it did. |
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Term
| Fashions Inc has 12 shareholders. The company is subject to the Model Act. how many directors is Fashions, Inc. required to have? |
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Definition
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Term
| Fashions Inc has 12 shareholders. The company is subject to the Model Act. How many officers must they have? |
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Definition
| As many as it states in the corporate by laws. |
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Term
| Under most statutes, a corporation may |
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Definition
| include in its charter a provision idemnifying directors unless they have engaged in intentional misconduct or bad faith |
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Term
| Which of the following statements is correct? |
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Definition
| Bonds are long term debt secured by company assets, debentures are long term unsecured debt, notes are short term debt and may be secured or un secured (all of the above) |
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Term
| A company sells products in Michigan. It doesnt have an office there or advertise. The marketing reps are based in New York, but travel to Michcigan to attend a trade show |
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Definition
| They are not required to register in Michigan becasue it does not have an ongoing oresence in Michigan. |
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Term
| What is meant by the term piercing the corporate veil? |
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Definition
| Corporate shareholders may be held personally liable to a person damaged by an act of the corporation |
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Term
| The executives of Jornaginn Corporation have decideed that they need to sell 50000 additional shares of stock to finance their expansion plans. The executives |
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Definition
| are limited by the numner of shares authorized in the corporate charter, but this number can be increased by amending the charter and paying a fee |
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Term
| iIf a court determines a managers corporate decison amounted to self dealing |
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Definition
| the business judgment rule will not apply |
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Term
| Anti takeover tactics include all EXCEPT |
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Definition
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Term
| Which of the following describes the duty of loyalty? |
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Definition
| It prohibits making a decison that benefits the decision maker at the expense of the corporation |
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Term
| Whcih of the following is not a method to acquire control of a company? |
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Definition
| make an intitial public offering |
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Term
| Which of the following statemetns is correct in respect to state efforts to offer protection to companies trageted for hostile takeovers |
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Definition
| Both statutory law and the state courts have provided some degree of protection for companies |
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Term
| On the day a tender offer begins |
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Definition
| A bidder must file a disclosure statement with the SEC |
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Term
| Which of the following is correct concering anti takeover efforts? |
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Definition
| Most stats hav epasses laws to dter hostile takeovers, but these statutes have not totally eliminated hostile takeovers |
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Term
| For the business judgement rule to apply |
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Definition
| the director msut act in the best interests of the corporation |
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Term
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Definition
| Is designed to regualte the conduct of those attempting to take over a company |
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Term
| Which of the following must be approved by the shareholders if a company is attempting to avoid a hostile takeover bid? |
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Definition
| White knights, staggered board of directors, supermajority voting (all of the above) |
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Term
| Which of the following is not true in applying the Williams Act? |
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Definition
| A bidder must keep a tender offer open for at least 30 business days initially |
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Term
| Which of the following is not true in applying the williams act? |
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Definition
| A bidder must keep a tender offer open for at least 30 business days initially |
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Term
| The model business corporation act states: "all corporate powers shall be exercised by or under the authority, and the business affairs of the corporation managed by or under the direction of its |
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Definition
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Term
| The term corportate manager refers to |
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Definition
| directors and corporate officers |
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Term
| WHo is more likely to want to increase the companies reserves and not invest more in research and development? |
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Definition
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Term
| managements duty to have a rational business purpose, avoid illegal behavior, and make informed decisoins referes to its |
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Definition
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Term
| Who has the right to manage the business of a corporation? |
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Definition
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Term
| Unless the form provides for a longer period, a proxy is valid for how long under the Moel Act? |
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Definition
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Term
| In A derivative lawsuit the named plantiff |
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Definition
| is the corporation on whose behalf the lawsuit is filed |
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Term
| Under the SEC rules companies |
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Definition
| Are required to post the information in the annual report and the proxy statement on their web site, but must emai shareholders either hard copies of all the information or a card telling them how to vote online |
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Term
| Kiam is the chief financial officer of Yonkka Inc. He is also a memner of YOnkas Board of directors. Kiam |
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Definition
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Term
| A corporation msut obtain shareholder approval before the comapny |
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Definition
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Term
| The proceeds, if any, of a derivative lawsuit go to |
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Definition
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Term
| Meredith, a ashareholder in Quarto Inc notified the board that the corporation had been wronged and asked to board to bring a lawsuit in the corporations name. in respnse to Merediths demand, the board |
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Definition
| can do any of the above. (File suit, reject demand or fail to respond, and appoint a special litigation committee |
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Term
| Ever green, a provate corporation decides to sell substantially all of the companies assets. Under the Model act and many statutes, they must |
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Definition
| buy back at fair value, the stock of any shareholders who object the decision |
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Term
| Lucy owns 10 stock in Quamba Inc. She wishes tot propose the proxy statement to be voted on at the shareholder meeting. before she does this she must |
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Definition
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Term
| Which of the following is correct concerning the SEC regulations on shareholder resolutions? |
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Definition
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Term
| Luella just purchased 5 shares of common stock in tricolor inc for 250. Luella has the right to |
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Definition
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Term
| To be succesful in a court challenge regarding an executives compensation, shareholders must prove that |
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Definition
| the board was grossly uninformed before it set the compensation amount |
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Term
| Veritas Inc is planning its annual shareholder meeting on june 15. The company |
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Definition
| Must send notices to everyone who owns stock on the "record date" whcih can be no more than 70 days before the meeting |
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Term
| A fundamental change in a corporation would be illistrated by |
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Definition
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