When Setting Up a Small Business, the Best Approach to Follow

question 86

Multiple Choice

When setting up a small business, the best approach to follow is to assume that after the business has been set up and commences operating,

• A) the lawyer you chose to assist you in the start-up of the business will continue to represent you.
• B) the lawyer you chose to assist you in the start-up of the business will refer you to a different lawyer.
• C) a lawyer will no longer be required.
• D) you will not need legal advice, as long as you are a sophisticated client.
• E) the lawyer you chose to assist you in the start-up of the business will provide free legal services for the duration of the business's operation.

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Definitions:

Unidentified Principal

In agency law, a principal whom a third party knows or has reason to know exists but who lacks knowledge or reason to know the principal’s identity.

Legally Non-Existent

Refers to an entity or agreement that has no recognition or validity under the law.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.

Subagent

An agent appointed by another agent to perform tasks or duties on behalf of the original agent's principal.