Exam 17: Governance and Structure: Forms of Doing Business

Eggington Enterprises,Inc.,made $22,000,000 in profits in 2016.Eggington paid $3,000 per share to its shareholders.Jeff Goldstein owns one share of Eggington.Which of the following is true?​

Close corporations are generally publicly traded.

Which of the following forms of business structure provides limited liability for the personal assets of the owners?

In which of the following forms of doing business does the death of one of the owners cause dissolution?

A partnership by estoppel arises when actions lead a third party to believe a partnership exists.

Bylaws provide the requirements for meetings and voting.

A partner's interest in a partnership is not transferable.

A corporation is only a domestic corporation in its state of incorporation.

Boards cannot rely on outside experts in decision making.

The corporate opportunity doctrine requires directors to first present related business opportunities to the corporation.

Transfer restrictions:

Watered shares are shares for which the purchaser did pay more than par but less than full market value.

If members of a limited liability company exercise management authority,they lose their limited liability.

A limited partnership can exist by implication.

Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.​ -Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each)and four high-powered drills ($30,000 each).What happens to the partnership as a result of Suzanne's death?​

The shareholders of Beazer Homes USA filed suit against the directors for the compensation plan that the Board approved for officers that provided the officers with bonuses despite the losses the company experienced and the continuing declines in sales of homes.Which of the following is correct about the suit?

In a novation by the board of a pre-incorporation contract involving the corporation,the promoter,and a third party:

A proxy is valid only for 11 months.

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are:

The business judgment rule holds directors liable for: