Exam 4 Flashcards
Officers in a corporation typically include all of the following except:
- social director
- president
- secretary
- treasurer
social director
In the funeral home, an example of a general agent would be the FDIC limo driver embalming service visitation attendent
FDIC
An agent who is authorized to carry out all of a principal’s business of a particular kind or at a given location is called the ________ agent; and an agent who has limited power of authority to carry out only a specific act for the principal is called the ______ agent.
special; universal
broker; factor del credere
general; special
broker; general
general; special
A party who agrees to work for another party for pay is called a/an
employee
A principle making good losses of the agent and holding them harmless in actions related to the agent fulfilling their duties is termed:
indemnification
An agency relationship may be terminated by:
- bankruptcy of the agent
- dissolution of the corporation
- illegality of the subject matter and/or subsequent agreement
- death or incapacity of either the agent or the principal
all 4 of these
Which of the following is NOT a cause for dissolution of a partnership operation?
- death of a partner
- insanity of a partner
- excess profit
- bankruptcy of the partnership
excess profit
An entity which is distinct and separate apart from the existence of its owners is one definition of a/an:
corporation
Which of the following is NOT a duty of an employee to the employer?
- faithful and honest performance
- maintaining confidentiality
- perform and skill
- disobedience
disobedience
Written authorization allowing one to vote for another when a stockholder will be absent from a corporate meeting is called a/an
proxy
Which of the following could bring about the dissolution of a partnership, as discussed in class?
- marriage of one of the partners
- death of one of the partners
- one of the partners moving to another city
- divorce of one of the partners
death of one of the partners
A person or firm under contract to do a job, but who is NOT subject to the direction and control of the other party, is called an
independent contractor
Owners in a corporation are called
shareholders
One party who engages another party to work for pay is called an
employer
The name of the document which contains the terms of agreement between partners is the
partnership agreement
Which of the following is NOT a characteristic of a sole proprietorship business?
- the owner receives all of the profits
- the proprietor has no personal liability
- the simplest form of business organization
- the owner assumes all losses
the proprietor has no personal liability
The simplest form of business organization is the
sole proprietorship
A relationship in which one person represents another party in making contracts is called a/an
agency
The _____ are selected by the board of directors and are responsible for carrying out the board’s policies.
officers
The partner who has his/her liability for the firm’s debts limited to the amount of his/her investment is called the
limited partner
A partner who is liable only to the extent of his/her investment in the business is called the ____; and a partner who has full and personal liability is called the ____.
limited partner; general partner
Proportional shares of corporate profits paid to the stockholders are called
dividends
When a corporation has been given authority to exist as an entity by a state government, the corporation is said to be
chartered
Which of the following is NOT a duty of one partner to another?
- loyalty and good faith
- reasonable care and skill in conducting business practice
- conform to the partnership agreement
- remain silent
remain silent
A body elected by the stockholders to establish policies for a corporation is the
board of directors
In an agency relationship, the party who appoints another person to make contracts for and on his/her behalf is called the _______; and the party who is appointed to represent another person in making contracts is called the_______.
principal; agent
A relationship in which one person represents another in making contracts with third parties is called a/an
agency
A person or firm under contract to do a job, but who is not subject to the other party’s direction and control, is called a/an
independent contractor
Another name for shareholders is
stockholder
Rights of stockholders include all of the following EXCEPT:
- receive stock certificates
- vote at corporate meetings
- receive dividends
- sacrifice their vote if unable to attend a corporate meeting
sacrifice their vote if unable to attend a corporate meeting
Which of the following would a general agent most likely NOT be able to do for a principal?
- sign a contract which binds the principal
- buy goods on behalf of the principal
- vote in a general election of behalf of the principal
- manage a business on behalf of the principal
vote in a general election of behalf of the principal
In an agency relationship, the party who appoints another to make contracts for and on behalf of him/her is called the
principal
In an agency, the party who is authorized to make contracts for, and on behalf of, another party is called the
agent
An agent who is authorized to carry out all of a principal’s business of a particular kind or at a given location is called a/an
general agent
An agent who has limited power of authority, or is authorized to carry out only a specific act or acts, is called a/an
special agent
