6) DirtyBike Manufacturer manufactures dirt bikes in Cleveland,Ohio. DirtyBike gives an exclusive license to Paul's Dirt Bikes inOklahoma City, Oklahoma to sell the bikes. This is an exampleof:
A) a franchise
B) a distributorship
C) a chain style business
D) manufacturing arrangement
E) exclusive manufacturing arrangement
10) Cameron a partner in a pool and sauna business, enters intoa written agreement with a supplier for chemicals for their poolbusiness without the other partners' signatures on the agreement.Does Cameron have the authority to do so?
A) Yes, implied authority permits partners to enter intoagreements necessary to carry on partnership business.
B) Yes, actual authority permits partners to enter intoagreements regardless of the subject matter.
C) No, all partners to the pool and spa business must besignatories to a written agreement.
D) Yes, implied authority permits partners to enter intoagreements regardless of the subject matter and for any amount ofmoney.
E) No, unless the partnership agreement specifically authorizesonly Cameron to order pool supplies.
11) Dixon CPA, an accounting partnership, makes an offer toNessa to become one of their partners. Dixon recently took out aloan for $2 million. Nessa is concerned that, if she became apartner, she could be held personally liable for the existing loan.Which of the following statements best describes the liabilityNessa could face if she becomes partner?
A) Nessa can be held personally liable, up to the amount of herpercentage of voting rights.
B) Nessa can be held personally liable, and the capital she addsto the partnership can be used to pay off the loan.
C) Nessa cannot be held personally liable, but the capital sheadds to the partnership can be used to pay off the loan and hersalary can be used to pay off the loan.
D) Nessa cannot be held personally liable, and the capital sheadds to the partnership cannot be used to pay off the loan.
E) Nessa cannot be held personally liable, but the capital sheadds to the partnership can be used to pay off the loan.
