Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Legal Concepts for Accountants > Final Exam > Flashcards

Final Exam Flashcards

(87 cards)

Start Studying
1
Q

What is the difference between an independent contractor and an employee

A

an employee the employer has all control over them. like how many hours they work and the tools they use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the four ways to form an agency

A

express
ratification
estopel
by law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is an agency by ratification

A

principle didn’t tell you that you were an agent and after the fact the principle approves the acts of the agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is an agency by estopel

A

caused a 3rd person to believe that someone was your agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an agency by operation of law

A

example would be a husband and wife

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the Agent;s duty to the principle

A

Performance
Notification - tell any information you learn to the principle
Loyalty - solely loyal to the principle and maintain confidentiality
Obedience - follow all lawful instructions
Accounting - any money in and out - and no commingling of funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the Principle’s Duties to the Agent

A

Compensation
Reimpursement
Indemnification - agent acting on your behalf incurs liability you have to pay them
Cooperation - given particular job to to
Safe working conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the Agent’s Rights

A

normal contract remedies
demand in accounting - in commissions
no specific performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the principle’s Right s

A

Constructive trust - not all money agent collects turned in

Avoidane - agent breach contract you can rip it up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is express athority

A

written/oral detailed instructions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

agent has power to bind you to a contract that authority must be in writing

A

equal dignaty rule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

principle is knowm and agent is not liable

A

disclosed principle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

agentknow that the agent is representing someone else agent is liable

A

partialy disclosed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

no reason to know of principle/agent relationship agent is liable

A

undisclosed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the ways to terminate an agency by Act of the Parties

A 
Lapse of Time 
Purpose Achieved 
Occurenc of a specific event 
mutual agreement 
at the option of one party
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the ways to terminate the agency by operation of law

A

death or insanity
Impossibility - destruction of the subject matter
Changed circumstances
Bankruptcy
War between the principles contry and agent’s country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the advantages to a sole proprietor shi p

A

flexibility and earnings are only taxed once

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are the disadvantages to a sole proprietor ship

A

personally liable for debt of the business and difficult to raise capitol

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

type of franchise wher manufacturer licenses a dealer to sell its product

A

distributorship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

type of franchise where franchise operatites under a trade name and is identified as amember fo a slelect grop of dealers that engage in the franchisor’s business

A

chain style

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

type of franchise where manufacturing or processing plant aragnement the franchisor transmits to the franchisee the essential ingredients or formula to make a particular produc t

A

manufacturing arangement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

franchisor has total control of franchisee

A

franchise rule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

how do you terminate a franchise

A

governed by contract law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is a pass through entity

A

profits pass through to owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What happens if partnership is not expressed inwrithing
equal mgmt rights and equal profit rights any partner can bind in a contract
26
what does joint and severally liable
partners are liable for the entire debt but you could be responsible for the entire amount if other partners can't pay
27
professionals are only liable for there negiligence and not the negligence of their partners
LLP
28
partners's liablity is limited to the amount they have invested into the compny
LP
29
Why are LLC's popular
governed by state statute owners are called members protection of a corporation taxed as corporation or partnership
30
one transaction or short brief group of transactions taxed like a partnership have a duty of loayalty and can be held personally liable
Joint Venture
31
inv. group put together to finance a project
syndicate
32
buying group to get discounts (common among farmers)
coorporatives
33
going to need a good business plan and financials to prove seriousness and propably have to personally guarentee it
loan
34
3rd party provides capital to you and they are going to want ownersip and mgmt rights
ventrue capital
35
pooling funds on the internet
crowdfunding
36
artificial legal persons with many of the same rights as citizens
corporations
37
if the conduct is with in the scope of employment for a corporation then the corporation is responsible for thier acts
apparent authorigty
38
Corporations are liable for ___and ___ acts
tort and crimminal
39
in state of inforporation
domestic corporation
40
in another state
foreign orp
41
in another contry
alian corp
42
corporation with few owners
closely held corporoation
43
people wo established corporation have done all the nessessary things with minor error like a misspelled name
dejur corporation
44
major defect in establishing a corporation whether the corporation or not depends on the state normally it's a yes
defacto corporation
45
contracts made for unauthorized purposes
ulta vires doctrine
46
how do you peirce the vcorporate veil
you must have a comingling of funds and follow states tattuete and have some intent
47
a corporate directo or officer will not be liable to the corooration or to tits share holders for honest mistakes of judgement and bad business decisons
business judgement rule
48
describe the 1933 act
inatial sale os stock must dsiclose all material informaiton registration statement with SEC
49
how is the 1933 act violated
cant' omit materila fact know of the material fact defendant must excercise due diligenccec
50
describe the 1934 act
``` disclosures are continual 10b 10b-5 material misreprenstation - fraud insider trading missappripriation theroy short swing profits ```
51
when someone with int the corporation has information not avialiable to the public and acts on it
insider trading
52
lawyer learns insider information
missappropriation theroy
53
insider had transactions of stock with in six months assumbed to be insider trading
short swing profit
54
outside directors, and chief officers must sign financial documents
SOX
55
promotes competition and don't want thins that restrict trade
sherman anti trust act
56
agreements rival firm agreemenst | apply the rule of reaso and perse violation
Section 1 of anti trust act
57
2 rivals have agreement to do someting
horizontal restriant
58
firms in manufactouring buy up their suppliers
vertical restraint
59
rquired to pay same price
resale price maintence agreements
60
actions take by firms to get a monopoly
section 2 of the anti trust act
61
price pruduct at or below cost to drive compeitor out of business
predatory priceing
62
firm purchsing and incricing price of thins to buy and driving out competition
predatory bidding
63
professionals can be held liable under what for negligence and breaking their duty of care
contract law
64
attorney client relationsip
all communications are confidential and can't be shared with others uless said
65
attornes are liable for client and --
INTENDED 3RD PARTY BENEFICIEARYS
66
accountants client relationship
must turn over documents if told by court
67
conveying land to someone for their life and where it goes after death obligation to maintain
life esttate
68
ownership after death goes to other commone owners not heirs
joint tenancy
69
ownership after death goes to hears
tennancy in common
70
starts on one date and ends on another date
fixed term leace
71
leas pmts determine life of lease
periodic tenancy
72
eithe party can terminate with out notice
tenancy at will
73
right to go onto land limited use of someone elses property
easements
74
when you sell real estate
there is an implied warrenty of habitablity | seller must disclose hidden defects
75
best protection of the title
warrenty deed
76
used to clear the title
quit claim deed
77
obtain posession with out getting a dead
adverse possession
78
areas of land dedicated to how land could be developed
zoning laws
79
have some reason to insure something
insurable intrest
80
insureance for high level executives incase someone dies
key man insurance
81
pafter a police had been forceed for a specified length of time the insurer coannoft contest stmts made in application
incontestablity clause
82
life insurance po.ice will not automatically lapes if no pmt is make on the date due ordinarly under such provison the unsure d has a grace period of thirty or thirty one days with in which to pay an over due primimum befor the police is canceled
antilapse clause
83
to prevent mis understandings
ambigouity rule
84
creditors rights to live insurance
moste states exclude from creditors
85
pay money and beneficiary is paid when you die
whole life
86
limited pmt
you only pay for a limited amount of time
87
make payments for period then coverage ends
term insurance

Legal Concepts for Accountants (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions