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The test for this authority is whether agent reasonably believed she had authority to do the act.

Question $23$ options:

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Agreement authority

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Apparent authority

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Implied authority

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None of the above

Question $24($Mandatory$)(1\mathrm{.}66$ points$)$

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Arises based on what principal causes a Third party $($not agent$)$ to believe.

Question $24$ options:

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Agreement authority

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Apparent authority

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Implied authority

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All of the above

Question $25($Mandatory$)(1\mathrm{.}66$ points$)$

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The main advantage of a sole proprietorship is that the owner is personally liable for all losses or liabilities incurred by the business enterprise.

Question $25$ options:

$1)$ True$2)$ False

Question $26($Mandatory$)(1\mathrm{.}66$ points$)$

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When choosing a business entity, entrepreneurs should consider which of the following?

Question $26$ options:

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Ease of creation

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Owner's liability

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Tax consideration

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All of the above

Question $27($Mandatory$)(1\mathrm{.}66$ points$)$

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Franchises generally fall into these three categories

Question $27$ options:

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Distributorships, chain styly businesses, and manufacturing arrangement

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Sole proprietorships, chain style businesses, distributorships

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LLCs$,$ chain style businesses, sole proprietorships

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Manufacturing arrangements, distributorships, LLCs

Question $28($Mandatory$)(1\mathrm{.}66$ points$)$

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Because a franchisor's termination of a franchise often has adverse consequences for the franchisee, much franchise litigation involves claims of wrongful termination.

Question $28$ options:

$1)$ True$2)$ False

Question $29($Mandatory$)(1\mathrm{.}66$ points$)$

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Generally, both statutory law and case law emphasize the importance of good faith and fair dealing in terminating a franchise relationship.

Question $29$ options:

$1)$ True$2)$ False

Question $30($Mandatory$)(1\mathrm{.}66$ points$)$

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Traditionally, the two most common forms of business organization selected by two or more persons entering into business together have been the partnership and the corporation.

Question $30$ options:

$1)$ True$2)$ False