ADMS 2600 Quiz: SOME NOTES ON AGENCY.pdf

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periwinkleduck794

20 Mar 2015

School

York University

Department

Administrative Studies

Course

ADMS 2600

Professor

Richard

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Document Summary

Note: the following notes are in addition to the section on agency in your text. The parties involved in agency are the principal, agent and a third party. Types of agency: services of an agent to effect/make some sort of contract between the principal and the third party. This is usually done by a direct contract between the principal and the agent: Generally speaking the first kind of agency is one where the principal retains the. A, the principal is the employer of b and authorizes b to enter into a contract with a third party in order to do business. Here we can say that b is both the employee and agent of a. A, a partner in a general partnership composed of a, b, c and d enters into a contract with a supplier for goods to be used by the partnership. Agency arises by either oral or written contract, and where the principal enters.

Related Questions

1.Which of the following is true of the requirements for ratification to be effective?

A.The principal can accept certain parts of the agents act and reject others.

B. An individual must avoid misrepresenting himself or herself as an agent for another party.

C. The principal must have complete knowledge of all material facts regarding the contract.

D. The principal can avoid ratifying the unauthorized act.

2. If a principal is partially disclosed:

	A. the third party would not know that an agent is acting on behalf of the principal.
	B. only the agent would be liable in accordance with the contract.
	C. the third party would be aware of the principal

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

violettortoise959

Under MSRB rules, all of the following statements are TRUE regarding customer confirmations, EXCEPT for the statement that the confirmation:

a. Must show commissions in an agency transaction

b. Need not show the markup in a principal transaction

c. Must disclose the third party to the trade in an agency transaction or offer to furnish such information upon request

d. Need not disclose if the broker-dealer acted as a principal or agent in the transaction

Which of the following factors would be LEAST useful when analyzing the credit risk of an issuer of general obligation bonds?

a. The London Interbank Offered Rate (LIBOR)

b. The tax base of the issuer

c.The amount of unfunded pension liabilities

d. The schedule of debt service requirements

A customer in the 28% tax bracket buys a 10% corporate bond at par. What is the investor's net yield?

a. 2.8%

b.7.2%

c.10%

d.13.9%

A broker-dealer that is an MSRB member firm sells bonds to one of its customers. If the broker-dealer is a member of the syndicate, the firm is entitled to the:

a.Takedown less the concession

b.Additional takedown plus the management fee

c.Total takedown less the management fee

d.Total takedown

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ADMS 2600 Quiz: SOME NOTES ON AGENCY.pdf

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