1. For which of the following business organizations is the RCW default provision for profit sharing by the owners (if there is not an agreement otherwise providing for how profits will be shared): "entitled to an equal share of the ... profits?"
A. limited liability companies
B. limited partnerships
C. corporations
D. limited liability partnerships.
2. Alice, Ted, and Carol want to form a limited partnership to build two restaurants: Alice's Restaurant and Ted's Deli. In Washington, a limited partnership will be created when
A. a certificate of limited partnership is filed with the Secretary of State.
B. a partnership agreement is executed.
C. construction of the buildings actually begins.
D. the limited partners make their capital contributions.
3. An agency relationship can be formed by
A. agreement.
B. ratification.
C. both A and B are correct. [both “Answer 1” and “Answer 2” are correct.]
D. neither A nor B is correct [neither “Answer 1” nor “Answer 2” is correct.]
4. An agent's duties to a principal include
A. the duty of performance.
B. the duty of obedience.
C. the duty of accounting.
D. all of the above.