Nora Has Entered into a Joint Venture with Scott to Sell

question 54

Multiple Choice

Nora has entered into a joint venture with Scott to sell diet supplements.They have set up a corporation to carry on the business.They are the sole shareholders and directors.Nora is the president.Which of the following are TRUE?

• A)Nora is not an agent of the joint venture because the participants in a joint venture cannot be agents.
• B)Nora is an agent of the joint venture with the authority that would be usual for a president to have.
• C)Nora is liable as a principal for all obligations of the joint venture business.
• D)Nora can only bind the corporation to contracts that are within her actual authority.
• E)Nora can only bind the corporation to contracts that Scott has expressly consented to.

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Definitions:

Expected Price Level

The anticipated average level of prices in the economy for goods and services, often considered in the context of inflation expectations.

Aggregate Supply

The total supply of goods and services produced within an economy at a given overall price level in a given period.

Sticky-Price Theory

A theory proposing that prices of goods do not immediately adjust to changes in economic conditions, causing economic inefficiencies.

Aggregate Demand

The grand total of all demands for goods and services within an economic sphere, established at a certain collective price level during a fixed timeframe.