Transfer of Ownership Will Affect the Continuity of a

question 18

Multiple Choice

Transfer of ownership will affect the continuity of a

• A)corporation.
• B)sole proprietorship.
• C)partnership.
• D)sole proprietorship or partnership.

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Definitions:

Apparent Authority

The impression given by a principal to a third party that an agent has the authority to act on the principal’s behalf.

Agency Relationship

A legal relationship wherein one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement, making the contract legally binding.

Apparent Authority

A situation where a person appears to have been given the power by a business to act on its behalf, even if no formal authority has been granted.