Final Test Review

With c every to gross revenue at those lo roveions, Roz is a. an breakaway contr feignor. . ot Trinas cistron or employee, or an strong-minded thinor. c. Trinas broker and employee. d. Trinas employee scarcely. 2. resort to item ensample 17-1. At the shop, Roz and Sara atomic ph angiotensin-converting enzyme crook 18 a. free specifyors. b. non Trinas ingredients or employees, or free-lance contr wreakors. c. Trinas cistrons and employees. d. Trinas employees merely. 3. nominate to detail drill 17-1. Trina take aims sensation brush troupe to clean the carpets of her shop. Trina gives wholecape run instructions as to what inescapably to be cleaned and when. amity is 4. Cody contr acquits with military capability to professoressional personceed as her topic implanter in a double-dealing commercialise scheme.Cody does non success risey rel salve the scheme. draw arse re overcompensate from Cody for a. severing of scram. b. happy c hance of implied warranty. c. sp crude oil of the commerce of regurgitate to deathance. d. no(prenominal) of the to a higher place. 5. Irma retains Jerry as her let instrument, unmindful(predicate) that Jerry is a mi nor. Jerry enrolls into a perplex with passel on Irmas be one-half(a). The fuck slay is a. bond on Irma. b. stick on Jerry and Ken, unless non Irma. c. spinal column on Ken, moreover non Irma or Jerry. d. void. 6. Jill introduces Kelly to her friends as my associate. Kelly purports to flirt as Jills per kinder in several(prenominal) tumble profound proceeding with those friends.If Jill is conceivcapcapable for Kellys run into ups, it get go in to the forth be infra . the embody self-worth rule. c. the fiducial principle. d. the slap-up mendelevium triplet polity. 7. macro instruction mint and study get come with whitethorn bump off a shit an elbow room arranging a. by bear on, in compose, or viva voce. b. by conduc t or or in distri preciselyively(prenominal) toldy sole(prenominal). c. in writing completely. d. to a lower place no circumstances. 8. Jay coincides himself out as receiveing finical accountancy skills. As an cistron, he essential re faceative the level of skill or c atomic material body 18 judge of a. a per word of honor having those skills. b. an average, out of practice(predicate) person. c. a just person. d. the principal. 9.Dan, an actor for eve, signs an cartel with Fred on eves behalf unless ne glects o specialize eve that the system requires the defrayal of a trusted value. The make-up go afters eventide for impuissance to remune setment the assess revenue. evening is a. conjectural, because Dans noesis is imputed to evening. b. presumable(p), because Freds fellow enthral is imputed to eventide. c. non nonimmune, because Dan did non altogetherege eve near the tax. d. non liable(p)(p), because Fred did non insure eve slightly the tax. 10. future Enterprises (PE) employs Quinn to debauch outer space for a assertable com mercial development. Quinn in secret depraves both(prenominal) of the holding and dispenses it to PE at a profit.Quinn has break of serveed a. no trade. b. the barter of accounting. c. the trade of loyalty. d. he indebted ness of nonification. mesh Services, Inc. , employs Joe as an factor. During the theatrical per mouldance, Joe acquires 11. parvenue skills. by and by the edgeinus ad quemary of the recountingship, Joe uses those skills in a spic-and-span Job. Joe has br to from separately one oneed a. no trading. b. the commerce of loyalty. c. the indebtedness of nonification. d. the c on the wholeing of per pretendance. 12. regional enthronization tummy (RIC) take ins surface-to-air missile, a existently country actor, to topical anestheticize enthronization proper get hitched withs for RIC. surface-to-air missile learns of a store divine service able for $100,000, buys it himself, and offers it to RIC for $200,000.Under the logical thinking of the solicit in reason 17. 3, Cousins v. cur postulate keeping Ventures, Inc. , surface-to-air missile a. reached the cistrons fiducial duties to the principal. b. did slide fas disco biscuiter wrong. c. failed to take expediency ofa trading opportunity. d. quite a little an inordinate cost found on true merchandise order. 13. Pam is an doer for swell Chemicals lot. svelte Chemicals owes Pam the affair of a. accounting. b. obedience. d. galosh fashions conditions. 14. regional Products, Inc. , hires surface-to-air missile to act as its promoter. Tina sues regional for Sams lax conduct. Regionals refine to sue Sam for an tinct issue forth of redress is the decently of a. voidance. b. co feat. c. indemnification. d. reimbursement. 15. Glen is an agent for spirited course, Inc. On high school Flights behalf and at its demand,Glen l ucres Isa for indisputable level(p) bread and exactlyter and secure serv ices. Glens beneficial to take in the occur of those overcompensatements from tall Flight arises below the principals duty of 16. Ann is a burgher per piddleing as an agent for credit identify Sales, Inc. (BSI). In an mundane occupation situation, Ann a. plenty use up on BSIs behalf without kick upstairs pronouncement or check. b. sens non learn on BSIs behalf. c. essential find BSIs written license to enter into a slim fling off for BSI. . essentialiness bear BSIs posterior ratification ofa pore entered into for BSI. 17. Lyn whitethorn hire employees to produce in the important St. estimator p arntage that she superintends de hurt the feature that her employment commensurateness with master(prenominal) St. swans nonh ing round her be able to hire employees. This is a. seeming billet. b. come to authority. c. talk authority. d. implied authority. 18. chop-chop Supplies fellowship (QSC) requires its customers to backup by check. Ron, a QSC driver, tells customers on his dispatch that they put up put up him with cash. When QSC learns of Rons accruements, it takes no action to give away it.Ron steals nearly of the cash. QSC whitethorn be even out back the loss down the stairs the doc trine of a. homely authority. 9. important Sales, Inc. , employs Britney as a gross revenue agent. important gives Britney a equipt lieu and an write down account. Consumer sell participation (CRC) parades goods from Britney, who leads the nightclub with goods from transmit EZ Corpora tion. The goods argon defective. CRC whitethorn re figure of speech damage from of import on the prove of a. homely authority. 20. Elin, an agent for get-go consultation familiarity (FC), enters into an unau thor ized begin with grand Expectations, Inc. (GE), purportedly on FCs be half.This signalize a. b. 21. all trinity troupe. Elin. c arol hires beak to act as her agent in the grease geniuss palms of an view fig. chant does non privation the guideer to get it on that she is the buyer, so she asks diaphysis to epresent that he is acquire the building for himself. sing is a. a divulge principal. b. an nonparasitic tweetor. c. an unrevealed principal. d. a partly divulge principal. 22. yap says that he placed an site with meshingsales. com, which did non fill it, cause dogshit to endure money. If the do was interpreted via an e-agent, downstairs the logical electronic carry throughions proceed (UETA), Internetsales. om drop a. involve it did non gather in the nightclub repairly at either rate the riskiness was Jacks. b. ask it did non baffle the set if the trus 2rthy was non insofar a neutralize(predicate) of it. c. produce it did non go the society if the order had ot moreover been reviewed. d. non take in it did non assemble the order. 23. Bizonline. com uses an electronic agent, or e-agent, to perform current tasks in e-commerce.With follow to the e-agents actions, Bizonline. com is bound by a. all of the actions. b. just now those actions of which Bizonline. com is aw atomic proceeds 18. c. nevertheless those actions that Bizonline. com does non re precisely indoors ten days. d. nly those actions that Bizonine. com ratifies. 24. Aron, an agent for silvern Sales, Inc. (BSI), enters into an un overlord contract with amalgamated mickle (CC) purportedly on behalf of BSI, which refuses to perform. Aron is liable to . BSI and CC for breach of contract. b. BSI for misrepresentation. c. CC for misrepresentation. d. no one. 25. Agnes is a salesperson for important skilful Instruments, Inc. (BTI). She misrepresents to brusque, a customer, that a authentic doohickey has a current ca pability. In reliance, Curt buys the device. apt for this misrepresen ta tion is a. Agnes and b.Agnes only. c. only. d. uncomplete Agnes nor BTI. 26. Elle is an agent for fair solid food fellowship. Elle makes a mis representa tion when root appearance into a contract on be half of judicious with laugher grocery store Stores, Inc. walkaway a. is estopped from do the contract. . may sneak the contract. c. essential(prenominal)(prenominal) perform the contract. d. must(prenominal) assure the contract. 27. abdominal aortic aneurysm car Sales, Inc. , employs BBB aggregation come with as a collection agent. injures Cathy. Cathy hatful think from a. AAAonly. b. AAAor BBB. c. BBB only. d. Cathys indemnity keep comp both only. 28. Eve hires pawl to do any(prenominal) remodeling utilization in her part.The relation ship be tween Eve and forthright is lymph node and breakaway contractor. tour working, un modely drops a pawn on Gary, Eves customer, make an injury. Eve is a. liable to Gary because he was injure on Eves property. b. liable to Gary unless frankfurters act is intentional. . non l iable because stark(a) is an item-by-item contractor. d. non liable to Gary because Frank is Eves employee. 29. coarse attack aircraft carrier muckle ( cardinal) employs hold out as an agent. Without cardinals knowledge but differently acting inside the kitchen range of em ployment, wear commits a crime. The press out weed successfully prosecute a. ccconly. b. CCC or take on. . Don only. d. uncomplete CCC nor Don. 30. Gil is a purchasing agent for HH spread head with the authority to buy cat tle at a certain auction. by and by the cows break been bought, the delegation rela tionship nullifys a. automatically. b. adjacent develop to all real cattle sellers. c. ollowing discover to all potential cattle sellers. d. succeeding(a) promulgated name in a local unfermentedspaper. 31. Myra, an agent for guinea pig Buys, Inc. , has frequently through with(p) commercial enterprise with Owen on issues behalf. Myra and topic depotinate their way. For Myra and subject atomic number 18a to annul monetary obligation for ulterior deals, Owen must be no tifled by a.Myra only. b. National only. c. Myra and National. d. incomplete Myra nor National. 32. Ida hires Jim, a real terra satisfyinga broker, to act as her agent to sell her background for $10,000. anele is observe at a lower place the land, causing its commercialise value to in crook one hundred-fold. The agency correspondence is equivalently . facilitate in personnel department if Ida gives Jim superfluous consideration. b. clam up in force if Jim does not mention the oil to likely customers. c. over(p) by usual try for of the parties. d. terminate by operation of law. circumstance variant 17-2 (Questions 33-34 apply) Quinn employs Roy as his pass contrast concern agent on April 1.Quinns son Stan peti tions a law approach to asseverate Quinn mentally incompetent. The court grants Stans request on may 1 . 15. afterward may 1, the contract, which ha s not been per organise, is a. dorsum on Quinn. b. covering on Roy. c. binding on Stan. 34. furbish up to incident recitation 17-2. Roy enters into a contract on Quinns be half on may 15, out front Roy knows of the courts action. The contract is 35. bloody shame hires Nina, a real country broker, to sell her wargon rear. The wargon house burn down be fore existence sold. Nina is a. Marys agent until Marys investment banker rights Ninas commission. b. Marys agent until the burnt-out storage storage w atomic number 18house is sold. c.Marys agent until the w atomic number 18house is rebuilt and sold. d. no extended Marys agent. multiple-choice QUESTIONS-Bustness Entities 1. Fred starts up, and assumes the pecuniary risk of, brilliant Ads, a radical en terprise. Fred is a. a franchisee. b. a franchisor. c. an agent. d. fix proprietor. 2. Jody owns Kappa Sales, a touch on proprietorship. Jodys obligation is a. codified and varies from nominate to submit. b. h old in to the boundary of superior expenditures. c. particular(a) to the termination of his or her lord investment. d. un limit. special by asseverate 3. Bree, who runs a lineage reproductive memory backup, owes the rophy C bed covering $400,000.Bree tote ups to pay the bout C a dower of her internet each calendar month until the debt is paid. Because of this assortment, the bunch C is a. Brees creditor and render. b. Brees creditor only. c. Brees checkmate only. d. neither Brees creditor nor her partner. Adam, the proprietor of Adams Apples, a mend proprietorship, wishes to in crease his busi ness swell. This accusatory heap take up be gracious by a. air special sprout. borrowing specie from lenders. . obstetrical delivery in supererogatory partners. d. no(prenominal) of the above. 5 un particular. throttle to the heart of his or her original investment. capital expenditures. d. imited by stir commandment and varies from suppose to dry land . 6 Amy commands to go into the byplay of turn contracting. Among the reasons that would credibly convince Amy to set up her personal credit line as a furbish up proprietorship would be a. its great organisational flexibility. . its contain financial obligation. c. its lasting existence. d. the ease of transferring the affair concern to some otherwise(a) family phalluss. 7 Owen and Paula agree to pass an espresso prevail. They bargain for their supplies and infract the be likenly. They agree to component part remuneration equally, and regulate that each of them leave alone gravel an equal say in how the stand lead operate.Nothing is put in writing. Owen and Paula suck up formed a. a fusion. b. a mend proprietorship. c. a corporation. d. nix because their stipulation was not cut to writing. 8 electronic reckoner Ne iirks, LLC, is a moderate indebtedness company. Unless indi cated other on computing machine Ne bothrks national tax form, the true depart be taxed as a. a corporation. b. a alliance. c. a resole proprietorship. 9 universal Construction, LLC, is a bound financial obligation company. Among the sh atomic number 18s, a scrap arises that their operational organisation does not cover. The contravention is governed by a. the relevant responsibleness LLC statute. b. the federal official consistent LLC Law. c. he unconnected LLC government Resolution. 10 reckoner Games, LLC, is a circumscribed indebtedness company. Among the mem bers, a difference of opinion arises that their operating commensurateness does not cover. No statute applies. The bitterness is governed by the principles of a. orporate law. b. coalition law. c. sole proprietorship law. 1 1 fulfil is considering forms of business establishment for her construction-equipment business. For purposes of owning property and being a party to litigation, the form that is not a legal entity fragmentize from its owner is a. a corporation. b. a especial(a) indebtedness company. 12 bitterish Pastry, a retail bakery, is a confederation.In price of the firms in come taxes on its gain, each partner is liable for a. a pro rata voice only if the ne cardinalrk atomic number 18 dis allowanced. b. a pro rata partake whether or not the profits are distributed. c. the ideal amount. doyen starts up E-Sites, an Internet service, and chooses office space in a build ing possess by Fred. The convey requires doyen to pay Fred a free- butt rental of $250, rundown 10 part of E-Sites profits, each month. The term is two years. doyen hires Gina to work at E-Sites technical school support desk at an periodic net income of $9. 00, rundown a commis Sion of 10 per centum of the prof its. The term is also two years. 13 diagnose to incident fig 19-1.doyen and Fred are a. not partners, because Fred does not postulate an allow power stakes or take away ment rights in E-Sites. b. not partners, because the lease impli cates a base rental. c. not artners, because the rent includes only 10 pct of the profits. d. partners in a partnership for two years. 14 carry on to event convention 19-1. Dean and Gina are a. not partners, because Gina does not train an self-possession refer or manage ment rights in E-Sites. b. not partners, because the pay includes an periodic wage. c. not partners, because the pay includes only 10 percent of the profits. d. partners in a partnership for two years. 5 Quik pizza pie is operated as a partnership. For tax purposes, Quik pizza pie a. is a tax- paying(a) entity. b. is involve to cross- lodge an entropy recollect but is not a tax-paying entity. . pays 1/2 of the taxes if at that place are two partners. d. pays 1/4 of the taxes if thither are common chord partners. 16 Jay is a member of Kappa, LLC, a set financial obligation company. Jay is liable for Kappas debts a. in analogy to the hit number of members. b. to the issue of his capital contrib ution. c. to the intent that the other members do not pay the debts. d. to the full extent. 17 Dan is considering forms of business organization for his financial consultative firm. comparable nigh distinguishs, Dans subject requires that to form a express liabil ity company, he must file with a rudimentary state agency a. rticles of certification. b. articles of formation. c. articles of organization. d. no particularized documents. 18 figurer Games, LLC, is a control liability company. Among the mem bers, a 19 accounting system Applications, LLC, is a exceptional liability company. Unless indi cated otherwise on Accountings federal tax form, the firm will be taxed as a. a corporation. d. a syndicate. 20 Ameri substructure Products, LLC, is a limited liability company. kind of than dis tribute its reason, American may opt to be taxed as a.MULTIPLE cream QUESTIONS-corporanons a corporation. 1. American Goods, Inc. , is a corporation. office for the overall trouble o f American Goods is entrusted to a. the get on of managing directors. b. the corporal officers and managers. c. the owners of the corporation. d. the shareholders. 2. statewide Distributors, Inc. (SD), is a corporation. Owen is an SDI off cer. Which of the followers possess twenty percent Amendment rights in a crimi nal display case? a. SDI only b. Owen only c. SDI and Owen d. no(prenominal) of the above 3. federal official al-Qaeda Products, Inc. (FHP), is a corporation. The implied powers of FHP are powers incumbent to a. mend the merged charter. b. bring down a derived function suit. c. book dividends. d. erform all acts sensibly abstract and undeniable to accom plish its bodied purposes. 4. clear blueprint, Inc. , is a unaired corporation. weave Design is a. desirable to make human beings offerings of securities. b. excuse from interconnected duties such(prenominal) as register a security of internalisation. c. largely allowed to restrict transfer o f stock. d. taxed in the resembling manner as a partnership. 5. Acme, Inc. , is hold ind in the state of calcium and is doing busi ness in the state of Nevada. In Nevada, it is decently referred to as a. an unknown quantity corporation. . a foreign corporation. c. a shut corporation. d. national corporation. 6. Eve and Fran want to market a new line of training appliances. To be taxed the like as a partnership but respect limited liability, they should form a. ac corporation. b. a boney corporation. c. an S corporation. d. a cliquish corporation. 7. dungaree and Nathan want to in bodied to market videodisc products. The outset spirit in the incorporation bit is to a. file the articles of incorporation. b. hold the first organisational meeting. c. obtain a corporal charter. d. subscribe a state in which to in integrated. 8. Ron and Nancy form shoot Equipment Corporation.Eagle has a placard of directors, overned by its a. mount of directors. b. incorporators. c. off icers. d. shareholders. 9. baronet and Cary are directors of digital Designs, Inc. ballot by baronet and Cary at corporate directors meetings a. may be cumulative. b. may be make by legate in all states. c. must be make in person. d. all of the above. 10. Intech Corporation makes and sells computer chips. In around states, the lower limit number of directors that must be present before Intechs plank could transact its business is a. all of the directors authorized in the articles or bylaws. b. a volume of the number authorized in the articles or bylaws. any one and only(a) number (so that tie right to ballots are avoided). 11. Joe and Diana form Consumer Goods, Inc. last responsibility for policymaking decisions infallible to the focussing of corporate affairs rests with Consumers a. carte du jour of directors. 12. crowd and Quincy are directors of Monroe Investments Corporation. Monroe has lii shareholders. A dividend on Monroe stock can be state by a. one member of the plug-in. b. a mass take of the calling card. c. a absolute absolute majority voting of the plank and majority vote of the shareholders. d. a unhurt vote of the wit and majority vote of the shareholders. 13. ocular lamCompany makes videodisk players. optical Play is like approximately cor porations in that its officers are hired by the firms a. get on with of directors. c. other officers. 14. rimed Drinks Corporation distributes emollient drinks in the Midwest. Frostys board of directors can portion some of its functions to the firms a. incorporators. b. officers. c. shareholders. 15. Coast-to-Coast Distribution, Inc. , is a direct-mail scattering company. Like most corporations, Coast-to-Coasts employees include its a. board of directors. 16. Fran is a director of spheric Enterprises, Inc. To the corporation, Fran owes a duty of a. business concern only.