Business law Agency and partnership 1.The creation of an agencyalways required a written document authorizing the agent to act forthe 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 hertermination can create liability to those parties under the theoryof apparent authority. T/F
4.Liability for the tortious acts of an agent will depend uponhow much control the principle had over the agent. T/F
5.General partner stand only to lose their investment in thepartnership if the partnership goes broke. T/F
6.Under the doctrine of respondent superior the principal isliable for any harm caused by his agent, when the agent is actingwithin the scope of his authority. T/F
7.If the partners fail to write down the proportional ownershipinterest then they will be presumed to be equal partners. T/F
8.In the absence of a written agreement, any partner can refuseto allow anyone to become a partner in his partnership, since it isa voluntary relationship. T/F
9.What is known by the agent is presumed to be known by theprincipal. T/F
10.A limited partnership only has limited partners. T/F
11.Limited partners have a limited right to manage thepartnership affairs. T/F
12.Partners cannot use the general partnership agreement to denythe claims of creditors of the partnership; if the assets of thepartnership are not enough to the debt of the partnership thenpartners are personally liable for the debts of the partnership.T/F
13.A partnership is not a tax paying entity, but must file a taxreturn. T/F
14.The principal of Marshaling of assets means that creditors ofan individual partner must first exhaust his assets before takingany partnership property. T/F
15.The statute of frauds does not generally require anypartnership agreement to be in writing. T/F
Business law Agency and partnership 1.The creation of an agencyalways required a written document authorizing the agent to act forthe 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 hertermination can create liability to those parties under the theoryof apparent authority. T/F
4.Liability for the tortious acts of an agent will depend uponhow much control the principle had over the agent. T/F
5.General partner stand only to lose their investment in thepartnership if the partnership goes broke. T/F
6.Under the doctrine of respondent superior the principal isliable for any harm caused by his agent, when the agent is actingwithin the scope of his authority. T/F
7.If the partners fail to write down the proportional ownershipinterest then they will be presumed to be equal partners. T/F
8.In the absence of a written agreement, any partner can refuseto allow anyone to become a partner in his partnership, since it isa voluntary relationship. T/F
9.What is known by the agent is presumed to be known by theprincipal. T/F
10.A limited partnership only has limited partners. T/F
11.Limited partners have a limited right to manage thepartnership affairs. T/F
12.Partners cannot use the general partnership agreement to denythe claims of creditors of the partnership; if the assets of thepartnership are not enough to the debt of the partnership thenpartners are personally liable for the debts of the partnership.T/F
13.A partnership is not a tax paying entity, but must file a taxreturn. T/F
14.The principal of Marshaling of assets means that creditors ofan individual partner must first exhaust his assets before takingany partnership property. T/F
15.The statute of frauds does not generally require anypartnership agreement to be in writing. T/F
