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UVU LEGL 3000 Test 4 Sample Questions

Decent Essays

Test 4/Final Review SAMPLE TEST
Spring 2014
1.Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina approve the contract.
This is
a. an agency by agreement.
b. an agency by estoppel.
c. an agency by ratification.
d. not the creation of an agency relationship.
2.Based on Bluto's conduct, Cass believes that Dee has the authority to act on Bluto's behalf even though Dee has no actual authority to do so. Dee has
a. apparent authority.
b. equal authority.
c. express authority.
d. implied authority.
3. Geoff has a written agreement with Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied
a. by contradiction.
b. by custom.
c. by lack of reason.
d. …show more content…

d. only Wyoming and Florida.

21.Boutique Corporation would like to change its corporate status to avoid income taxes at the corporate level. To qualify, the shareholders must not be
a. corporations.
b. estates.
c. individuals.
d. partnerships.
22.Niche Stores, Inc., must hold a shareholders' meeting
a. once a month.
b. once a year.
c. once every two years.
d. only when it is called by the board of directors.
23.In all states, Sports Fitness Club Company and other corporations can pay dividends from
a. gross profits.
b. net profits.
c. retained earnings.
d. surplus.
24.Orin is a shareholder of Pinkwater Corporation. In some states, Orin might incur personal liability for unpaid
Pinkwater debts if he
a. accepts a dividend knowing that it was paid from retained earnings.
b. buys stock for less than its fair-market value.
c. fails to fulfill his fiduciary duty to the majority shareholders.
d. sells his shares.
25.Bret and Courtney form Delite Donuts, Inc. Ultimate responsibility for policy decisions necessary to the management of corporate affairs rests with Delite's
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
26.Gladys is a shareholder of Frozen Yogurt, Inc. As a shareholder, Gladys must approve
a. amending the bylaws.
b. declaring a corporate dividend.
c. hiring a chief executive officer.
d. issuing additional shares.
27.Eager Beaver Corporation fails to adopt bylaws. Under this

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