1) Fred and Barney agree while talking on the phone to form a partnership.Their partnership agreement is legally binding

c. only if each partner gives consideration to the other

d. without any further measures

2) Hillary,a partner in an LLC,owes $100,000personally to several creditors.To satisfy these debts,the creditors may obtain an order entitling them to:

a. Hillary's profits as a partner

b. Hillary's interest in partnershipassets

c. both a and b

d. none of the above

3) Generally accepted accounting principles that can determine whether an accountant is negligent,are determined byrules,releases and pronouncements of

a. the Securities and Exchange Commission

b. the American Institute of Certified Public Accountants

c. the Financial Accounting Standards Board

d. all of the above

4) How is Apparent authority created?

a. By perceptions of third parties that have been created by the principal

b. Byagreement

c. By implication

d. By either agreement or implication

5) Schuhhired Jack for six months as an assistant sales manager at $4000 a month plus 3% of sales.

a. The agreement must be in writing and signed by the party to be charged.

b. This is an independent contractor agreement

c. Jack must disclose to Schuhany interests that are adverse to Schuh'sbusiness

d. Jack can be dismissed at any time during the six month period of employment