Question 1

The rules that regulate and govern the internal operations of a corporation are known as:

Accepted Answer

A)  the certificate of incorporation
B)  the bond
C)  the bylaws
D)  statutes of business
E)  the corporate constitution

Question 2

With respect to transferability of ownership interests,a sole proprietor may:

Accepted Answer

A)  not transfer her interests
B)  may only transfer her interest with approval of the state
C)  freely transfer her interests
D)  transfer her interests to family members only
E)  transfer her interests after paying a capital gains tax

Question 3

During the course of a partnership's winding-up process,the partners owe each other:

Accepted Answer

A)  a duty to mitigate
B)  a duty to compete fully
C)  a duty to refrain from termination
D)  a duty of discounting
E)  none of the other choices

Question 4

In Brown v.Swett and Crawford of Texas,where Brown and his partner opened an insurance office in Houston for Swett,but Brown was fired,the appeals court held that Brown was not a partner in the office,he was a an employee,so could be fired.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following are not required to be in a certificate of limited partnership:

Accepted Answer

A)  the type or character of the business
B)  the business positions to be held by each partner
C)  the proportion of profits to be earned by each partner
D)  the business positions to be held by each partner and the proportion of profits to be earned by each partner
E)  the business positions to be held by each partner and the proportion of profits to be earned by each partner and the proportion of profits to be earned by each partner

Question 6

Factors that influence the choice of a particular form of business organization may include:

Accepted Answer

A)  capital requirements
B)  duration
C)  tax rates
D)  transferability of interests
E)  all of the other choices

Question 7

In K.C.Roofing Center v.On Top Roofing,the courts held that the owners of a
corporation abused its legal structure and would be personally liable for its debts.

Accepted Answer

A) True 
 B)False

Question 8

Top management of a public corporation legally report to the shareholders.

Accepted Answer

A) True 
 B)False

Question 9

The manager of a limited liability company:

Accepted Answer

A)  must be related to the members
B)  must have worked for the company for at least five years
C)  need not be a member of the company
D)  must be an American citizen
E)  must hold a law degree

Question 10

A partnership can begin with either a(n) _____________ or a(n) ______________.

Accepted Answer

A)  oral agreement;implied agreement
B)  oral agreement;false agreement
C)  oral agreement;forced agreement
D)  implied agreement;default agreement
E)  implied agreement;loan agreement

Question 11

There are two types of dissolution of a corporation:

Accepted Answer

A)  abstract and remote
B)  real and abstract
C)  federal and state
D)  finite and indefinite
E)  none of the other choices

Question 12

The shareholders of a corporation have the right to vote to instruct managers how to run the company.

Accepted Answer

A) True 
 B)False

Question 13

A(n) _______________ is an artificial person,or legal entity,created under state law.

Accepted Answer

A)  megabusiness
B)  limited partnership
C)  legal partnership
D)  sole proprietorship
E)  none of the other choices are correct

Question 14

When a limited partnership dissolves,the general partner receives his share of the profits and capital contributions before the limited partners are paid.

Accepted Answer

A) True 
 B)False

Question 15

The articles of incorporation set the rules that regulate the internal structure of a corporation.

Accepted Answer

A) True 
 B)False

Question 16

Unless otherwise stated by contract,the law of partnership presumes which of the following not to be true?

Accepted Answer

A)  each partner has an equal voice in partnership management
B)  a majority vote controls ordinary business decisions
C)  profits are to be divided among the partners
D)  regardless of the amount invested in the partnership,each partner has an equal vote
E)  all of the other choices are true

Question 17

The __________ are the "rules" that regulate and govern the internal operations of the corporation.

Accepted Answer

A)  the certificate of incorporation
B)  the bond
C)  the bylaws
D)  statutes of business
E)  the corporate constitution

Question 18

A complete termination comes about only after the partnership has been ________ and its affairs have been wound up.

Accepted Answer

A)  dissolved
B)  disillusioned
C)  standardized
D)  reorganized
E)  finalized

Question 19

Which of the following is not true about corporate directors?

Accepted Answer

A)  the initial board is often specified in the articles of incorporation
B)  directors are subject to a fiduciary duty of loyalty
C)  directors must report to the president
D)  directors may be removed from office for breach of duty
E)  none of the other choices

Question 20

Which form of business incurs double taxation:

Accepted Answer

A)  limited partnerships
B)  LLCs
C)  corporations
D)  proprietorships
E)  general partnerships

Exam 13: Business Organizations

Which form of business incurs double taxation:

Correct AnswerverifiedShow Answer

Factors that influence the choice of a particular form of business organization may include:

Correct AnswerverifiedShow Answer

A complete termination comes about only after the partnership has been ________ and its affairs have been wound up.

Correct AnswerverifiedShow Answer

A(n) _______________ is an artificial person,or legal entity,created under state law.

Correct AnswerverifiedShow Answer

The articles of incorporation set the rules that regulate the internal structure of a corporation.

Correct AnswerverifiedShow Answer

Unless otherwise stated by contract,the law of partnership presumes which of the following not to be true?

Correct AnswerverifiedShow Answer

In K.C.Roofing Center v.On Top Roofing,the courts held that the owners of a corporation abused its legal structure and would be personally liable for its debts.

Correct AnswerverifiedShow Answer

With respect to transferability of ownership interests,a sole proprietor may:

Correct AnswerverifiedShow Answer

The manager of a limited liability company:

Correct AnswerverifiedShow Answer

There are two types of dissolution of a corporation:

Correct AnswerverifiedShow Answer

In Brown v.Swett and Crawford of Texas,where Brown and his partner opened an insurance office in Houston for Swett,but Brown was fired,the appeals court held that Brown was not a partner in the office,he was a an employee,so could be fired.

Correct AnswerverifiedShow Answer

When a limited partnership dissolves,the general partner receives his share of the profits and capital contributions before the limited partners are paid.

Correct AnswerverifiedShow Answer

Which of the following are not required to be in a certificate of limited partnership:

Correct AnswerverifiedShow Answer

The __________ are the "rules" that regulate and govern the internal operations of the corporation.

Correct AnswerverifiedShow Answer

During the course of a partnership's winding-up process,the partners owe each other:

Correct AnswerverifiedShow Answer

The rules that regulate and govern the internal operations of a corporation are known as:

Correct AnswerverifiedShow Answer

Which of the following is not true about corporate directors?

Correct AnswerverifiedShow Answer

A partnership can begin with either a(n) _____________ or a(n) ______________.

Correct AnswerverifiedShow Answer

Top management of a public corporation legally report to the shareholders.

Correct AnswerverifiedShow Answer

The shareholders of a corporation have the right to vote to instruct managers how to run the company.

Correct AnswerverifiedShow Answer

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A partnership can begin with either a(n) _ or a(n) __.

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