Business law Agency and partnership 1.The creation of an agency always required
ID: 2427086 • Letter: B
Question
Business law Agency and partnership 1.The creation of an agency always required a written document authorizing the agent to act for the principal and signed by both the principal and the agent. T/F
2.No consideration is required to create an agency relationship. T/F
3.Failure to notify partner with whom an agent has dealt of her termination can create liability to those parties under the theory of apparent authority. T/F
4.Liability for the tortious acts of an agent will depend upon how much control the principle had over the agent. T/F
5.General partner stand only to lose their investment in the partnership if the partnership goes broke. T/F
6.Under the doctrine of respondent superior the principal is liable for any harm caused by his agent, when the agent is acting within the scope of his authority. T/F
7.If the partners fail to write down the proportional ownership interest then they will be presumed to be equal partners. T/F
8.In the absence of a written agreement, any partner can refuse to allow anyone to become a partner in his partnership, since it is a voluntary relationship. T/F
9.What is known by the agent is presumed to be known by the principal. T/F
10.A limited partnership only has limited partners. T/F
11.Limited partners have a limited right to manage the partnership affairs. T/F
12.Partners cannot use the general partnership agreement to deny the claims of creditors of the partnership; if the assets of the partnership are not enough to the debt of the partnership then partners are personally liable for the debts of the partnership. T/F
13.A partnership is not a tax paying entity, but must file a tax return. T/F
14.The principal of Marshaling of assets means that creditors of an individual partner must first exhaust his assets before taking any partnership property. T/F
15.The statute of frauds does not generally require any partnership agreement to be in writing. T/F
Explanation / Answer
1.The creation of an agency always required a written document authorizing the agent to act for the principal and signed by both the principal and the agent. T/F TRUE 2.No consideration is required to create an agency relationship. T/F FALSE 3.Failure to notify partner with whom an agent has dealt of her termination can create liability to those parties under the theory of apparent authority. T/F TRUE 4.Liability for the tortious acts of an agent will depend upon how much control the principle had over the agent. T/F TRUE 5.General partner stand only to lose their investment in the partnership if the partnership goes broke. T/F FALSE 6.Under the doctrine of respondent superior the principal is liable for any harm caused by his agent, when the agent is acting within the scope of his authority. T/F TRUE 7.If the partners fail to write down the proportional ownership interest then they will be presumed to be equal partners. T/F TRUE 8.In the absence of a written agreement, any partner can refuse to allow anyone to become a partner in his partnership, since it is a voluntary relationship. T/F FALSE 9.What is known by the agent is presumed to be known by the principal. T/F FALSE 10.A limited partnership only has limited partners. T/F TRUE 11.Limited partners have a limited right to manage the partnership affairs. T/F TRUE 12.Partners cannot use the general partnership agreement to deny the claims of creditors of the partnership; if the assets of the partnership are not TRUE enough to the debt of the partnership then partners are personally liable for the debts of the partnership. T/F 13.A partnership is not a tax paying entity, but must file a tax return. T/F TRUE 14.The principal of Marshaling of assets means that creditors of an individual partner must first exhaust his assets before taking any partnership property. T/F TRUE 15.The statute of frauds does not generally require any partnership agreement to be in writing. T/F FALSE
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