Nora Has Entered into a Joint Venture with Scott to Sell

question 42

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 which 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:

Standard Costs

Predetermined costs of manufacturing a single unit of product, used for budgeting and performance evaluation.