In What Manner Are a Sole Proprietorship and a Partnership

question 68

Multiple Choice

In what manner are a sole proprietorship and a partnership similar?

• A) There is no legislated regulation affecting either.
• B) Both require special steps to create.
• C) Neither is a legal entity with capacity to contract.
• D) Both require regulation of their profit motives.

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Definitions:

Implied Agency

A type of agency relationship created by the actions of the parties involved, not by written agreement, where an agent is presumed to have authority to act on behalf of another.

Nonprogrammed Decision

A new, complex decision that requires a creative solution.

Programmed Decision

A simple, routine matter for which a manager has an established decision rule.

Nonprogrammed Decisions

Decisions made in response to unique, novel, or ill-structured situations that require creativity and judgment, as opposed to routine or standard procedures.