Mid-Term 2 (WK4)

Mid-Term 2 (WK4) - Mid-Term 2 Questions 78% Correct (WK4)...

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Mid-Term 2 Questions 78% Correct (WK4)
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1. Unsecured creditors are the last to be compensated under chapter 7 , so they often receive little or nothing. (Points: 1) True False 2. An example of a franchise is McDonalds. (Points: 1) True False 3. Bob has not paid his ex-wife alimony as required under court order. His ex-wife is trying to collect the alimony. Bob files a bankruptcy petition. This automatically stays his ex-wife's collection efforts. (Points: 1) True False 4. The only way to perfect a security interest is by filing a financing statement with the appropriate state office. (Points: 1) True False 5. Julie buys her first car, taking out a loan to do so. Her Dad co-signs the loan so that he is equally liable with Julie. Dad is a guarantor. (Points: 1) True False 6. A right of first refusal on a share certificate allows the corporation to match the offer that a selling shareholder receives for his shares. (Points: 1) True False 7. A straight bankruptcy is also known as a Chapter 7 bankruptcy. (Points: 1) True False 8. Dividends declared but not paid are debts of the corporation. (Points: 1) True False 9. A principal can ratify a contract even if the agent had no authority to enter into the contract on behalf of the principal. (Points: 1) True False
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10. Apparent authority is based on what a principal communicates to a third party. (Points: 1) True False 11. A sole proprietorship is a separate legal entity from it's owner. (Points: 1) True False 12. Both principal and agent are sometimes liable for an agent's torts. (Points: 1) True False 13. Direct liability is another name for respondent superior liability (Points: 1) True False 14. Upon termination of the agency relationship, the principal should not give notice to third parties that the agent dealt with as apparent authority is terminated automatically when the agency ends. (Points: 1) True False 15. A shareholder derivative suit may be brought by one or more shareholders of the corporation when the board of directors fails to act to protect the corporation's interest. (Points: 1)
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This note was uploaded on 06/08/2010 for the course MG 260DLB taught by Professor Brentgilje during the Fall '09 term at Park.

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Mid-Term 2 (WK4) - Mid-Term 2 Questions 78% Correct (WK4)...

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