Business Law: Exam 4 Material

Question 0

Nature of Agency Relationships are ____ and ____.

Answer 0

Parties

Delegation of powers

Question 1

Specialized business relationship between one party known as the “principle” and the other known as the “agent” is known as ____.

Answer 1

Agency

Question 2

Party who appoints a second party to serve as an agent is a ____.

Answer 2

principle

Question 3

Party appointed by a principal to enter into a contract with a third party on the principal’s behalf is known as ____.

Answer 3

agent

Question 4

From principle to agent, act in good faith on behalf of principals interests, and enters into contracts on principals behalf are known as ____.

Answer 4

Delegation of powers

Question 5

Agents that are authorized to carry out particular kinds of business or all business at a location are ____.

“FDIC”

Answer 5

general agents

Question 6

Authorized to transact specific act(s) is known as ____.

Answer 6

Special agent

Question 7

Stated in agreement creating agency; authority by appointment is ____.

“Written Power of Attorney”

Answer 7

Express authority

Question 8

Authority to do things in order to carry out express authority is ____.

Answer 8

Implied authority

Question 9

Authority agent believed to have because of principle’s behavior is ____.

Answer 9

Apparent Authority

Question 10

A person who undertakes to perform a specific task according to the terms of a contract; other contracting party has no control except as stated in the contract is an ____.

Answer 10

Independent Contractor

Question 11

Party who hires employees to do a certain work is an ____.

Answer 11

employer

Question 12

Person hired to perform a certain work is an ____.

Answer 12

Employee

Question 13

Agent’s duty to principle are ____ and ____.

Answer 13

Loyalty

Good faith

Question 14

Compensation, reimbursement of expenses incurred during course of employment is known as ____?

Answer 14

Principle’s duty to agent

Question 15

Compensation for sustained losses; adherence to terms of employment contract is ____.

Answer 15

Indemnification

Question 16

Business owned by one person who os subject to claims of creditors is a ____.

Answer 16

Proprietorship

Question 17

No separation of personal and business, simples form of business organization, Receives all profits and assumes all losses, bears all risks and has personal liability for all debts, death of the owner terminates the business is another form of ____.

Answer 17

Proprietorship

Question 18

Voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit is the definition of ____

Answer 18

Partnership

Question 19

Individual actively and openly engaged in the business and held out to everyone as a partner is a ____ partner.

Answer 19

General

Question 20

Individual who takes NO active part in management of a business, but has capital invested in the business is a ____ partner.

Answer 20

Silent

Question 21

Partner who has his or her liability for the firm’s debts limited to the amount of their investment is a ____ partner.

Answer 21

Limited

Question 22

To use reasonable care and skill, conform to contact of partnership, maintain records, exercise loyalty and good faith, and inform one another are the ____ of a partner.

Answer 22

Duties

Question 23

To participate in management, inspect financial data, contribution input as to how the business is managed withdraw advances (business money for personal use) and to withdraw profits are all ____ of a partner

Answer 23

rights

Question 24

The ____ of a partner are for contracts of the partnership and for torts.

Answer 24

Liabilities

Question 25

By acts of the parties; by court decree; and by operation of law are the ____ of a partnership

Answer 25

dissolution

Question 26

Dissolution by ____ of the parties are done by agreements; withdrawls, alienation, or expulsion

Answer 26

acts

Question 27

Reasons for dissolution by ____ are insanity, incapacity, misconducts, and futility (not making money; bankruptcy)

Answer 27

Court Decree

Question 28

The dissolution by ____ is illegality or death.

Answer 28

operation of law

Question 29

An artificial being, invisible, intangible, and existing on in contemplation of law, an entity that is something that has a distinct existence separated and apart from the existence of its individual members is a ____.

Answer 29

Corporation

Question 30

Protection for the individual members of the members is the ____.

Answer 30

Corporate Veil

Question 31

Formed to carry out government (like state universities and public hospital) functions are ____.

Answer 31

Public Corporations

Question 32

Formed by individuals to perform some non-governmental for profit is a ____.

Answer 32

Private Corporation

Question 33

Written document setting forth facts about a corporation prescribed by law for issuance of a charter and asserting the corporation has complied with all legal requirements is the ____.

Answer 33

Articles of incorporation

Question 34

A grant of authority from a government to exist as a corporation is a ____.

Answer 34

Charter

Question 35

The ____ consist of stock holders, board of directors, and officers.

Answer 35

Corporate structure

Question 36

Those having title to one or more shares of stock in a corporation, represent combined ownership of the corporation are ____.

Answer 36

Stock Holders

Question 37

Person authorized to vote for another by written authorization is a ____.

Answer 37

Proxy

Question 38

Body elected by stockholders to act on behalf of the corporation and carry out the board’s policies are the ____.

Answer 38

Board of Directors

Question 39

____ are the President, Vice President, Secretary, Treasurer; they are authorized by the Board of Directors to carry out board policies.

Answer 39

Officers