SPORTS LAW QUESTIONS QUESTION 21 Which of the following is true of an agent’s undisclosed self-dealing? A.

Question: SPORTS LAW QUESTIONS QUESTION 21 Which of the following is true of an agent’s undisclosed self-dealing? A. The principal cannot rescind purchases made. B. It does not violate the duty of loyalty. C. The principal must accept liability. D. The principal can ratify the purchase. QUESTION 22 Which of the following is true of a sole proprietorship? A. ASPORTS LAW QUESTIONS
QUESTION 21
Which of the following is true of an agent’s undisclosed self-dealing?
A. The principal cannot rescind purchases made.
B. It does not violate the duty of loyalty.
C. The principal must accept liability.
D. The principal can ratify the purchase.

QUESTION 22
Which of the following is true of a sole proprietorship?
A. A business operated under sole proprietorship should be owned by one or more people of the same family.
B. A business operated under sole proprietorship cannot be transferred.
C. Creditors can recover claims against the business from the sole proprietor’s personal assets.
D. Large businesses cannot be operated under sole proprietorship.

QUESTION 23
An association of two or more persons to carry on as co-owners of a business for profit is known as a(n) ________.
A. corporation
B. general partnership
C. sole proprietorship
D. limited partnership

QUESTION 24
Which of the following is true of profits and losses in a general partnership?
A. Losses are shared equally by all general partners.
B. The proportion of investment governs only the proportion of loss shared and not profit obtained.
C. The proportion of profit shared is equal to the general partner’s initial investment.
D. The general partner who proposed the idea of the business gets most profit.

QUESTION 25
Which of the following is true of general and limited partners in a limited partnership?
A. General partners are required to invest capital and refrain from managerial activities.
B. General partners are not personally liable for partnership debts.
C. Limited partners are not personally liable for partnership debts beyond their capital contributions.
D. Limited partners are exempt from annual capital investment and need only participate in management functions.
100% (1 rating)Answer NO. 21:- Option (D) Explanation:- The transaction can be ratified…View the full answer