Question 1

Limited partnership interests are generally not transferable.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following $\underline{\text{not}}$ be used to pierce the corporate veil?

Accepted Answer

A) inadequate capitalization 
B) alter ego theory 
C) formation of the corporation to avoid personal liability 
D) All of the above theories can be used. 
A) inadequate capitalization 
B) alter ego theory 
C) formation of the corporation to avoid personal liability 
D) All of the above theories can be used.

Question 3

A limited liability company can be created informally.

Accepted Answer

A) True 
 B)False

Question 4

Limited partners can consult and advise with the general partner and still retain limited liability.

Accepted Answer

A) True 
 B)False

Question 5

American Greetings,a family-owned corporation,wished to take the company private,and the family shareholders made an offer to purchase the shares of all non-family members.The family owns 10% of the company's shares,but has 50% of the voting power.The board refused to approve the offer for the shares because the price was too low.Which of the following is correct?

Accepted Answer

A) The approval of the board is not required for the family purchase of shares. 
B) The board's failure to approve the transaction means that the acquisition cannot be done without dissenting shareholders. 
C) The approval of the board cannot be obtained until the family uses its votes to restructure the board with directors friendly to its proposal. 
D) Those with a minority interest cannot acquire other shares. 
A) The approval of the board is not required for the family purchase of shares. 
B) The board's failure to approve the transaction means that the acquisition cannot be done without dissenting shareholders. 
C) The approval of the board cannot be obtained until the family uses its votes to restructure the board with directors friendly to its proposal. 
D) Those with a minority interest cannot acquire other shares.

Question 6

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Accepted Answer

A) True 
 B)False

Question 7

Shareholders generally elect the officers of the corporation.

Accepted Answer

A) True 
 B)False

Question 8

Limited partners:

Accepted Answer

A) can use their name in the partnership name. 
B) can contribute management services to the partnership. 
C) cannot advise the general partner. 
D) none of the above 
A) can use their name in the partnership name. 
B) can contribute management services to the partnership. 
C) cannot advise the general partner. 
D) none of the above

Question 9

Oil company executives are the highest paid CEOs annually.

Accepted Answer

A) True 
 B)False

Question 10

The corporate veil can be pierced for inadequate capitalization.

Accepted Answer

A) True 
 B)False

Question 11

A limited liability company:

Accepted Answer

A) can be created informally. 
B) does not have the pass-through feature of income and losses. 
C) is exclusive to the United States. 
D) none of the above 
A) can be created informally. 
B) does not have the pass-through feature of income and losses. 
C) is exclusive to the United States. 
D) none of the above

Question 12

A partner's interest:

Accepted Answer

A) is the same as the partnership property. 
B) cannot be attached by creditors. 
C) cannot be transferred. 
D) none of the above. 
A) is the same as the partnership property. 
B) cannot be attached by creditors. 
C) cannot be transferred. 
D) none of the above.

Question 13

Transfer of a partner's interest:

Accepted Answer

A) is void. 
B) results in dissolution of the partnership. 
C) relieves the partner of liability. 
D) makes the transferee a partner. 
E) none of the above 
A) is void. 
B) results in dissolution of the partnership. 
C) relieves the partner of liability. 
D) makes the transferee a partner. 
E) none of the above

Question 14

A partnership must file a separate tax return and pay taxes on its income.

Accepted Answer

A) True 
 B)False

Question 15

Upon termination of both limited and general partnerships,outside creditors have first priority in terms of asset distribution.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following activities will cause a limited partner to lose his limited liability status?

Accepted Answer

A) being employed by the general partner as an employee 
B) managing the firm with the general partner 
C) consulting with or advising the general partner 
D) All of the above will result in the loss of limited liability status. 
A) being employed by the general partner as an employee 
B) managing the firm with the general partner 
C) consulting with or advising the general partner 
D) All of the above will result in the loss of limited liability status.

Question 17

Partners are not liable for each others' torts committed in the scope of business.

Accepted Answer

A) True 
 B)False

Question 18

There are no formal requirements for forming a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 19

Draw a chart comparing the formation,liability,taxation,and management of partnerships,limited partnerships,corporations,and limited liability companies.

Accepted Answer

Use the chartin the

Question 20

John Bloomberg and Erick Ashman have been working together to earn money by doing yard work in residential areas.John collects the payments and has purchased the equipment the two use,including a lawn mower,edger,and trimmers.After deducting expenses for gasoline,repairs,and insurance,John gives one-half of the net to Erick.The two have no agreement about their relationship.Which of the following is correct?

Accepted Answer

A) John and Erick have a general partnership. 
B) John and Erick have a limited partnership. 
C) John and Erick have a joint venture. 
D) John and Erick have no business structure because they have no agreement. 
A) John and Erick have a general partnership. 
B) John and Erick have a limited partnership. 
C) John and Erick have a joint venture. 
D) John and Erick have no business structure because they have no agreement.

Limited partnership interests are generally not transferable.

Which of the following $\underline{\text{not}}$ be used to pierce the corporate veil?

A limited liability company can be created informally.

Limited partners can consult and advise with the general partner and still retain limited liability.

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Shareholders generally elect the officers of the corporation.

Limited partners:

Oil company executives are the highest paid CEOs annually.

The corporate veil can be pierced for inadequate capitalization.

A limited liability company:

A partner's interest:

Transfer of a partner's interest:

A partnership must file a separate tax return and pay taxes on its income.

Upon termination of both limited and general partnerships,outside creditors have first priority in terms of asset distribution.

Which of the following activities will cause a limited partner to lose his limited liability status?

Partners are not liable for each others' torts committed in the scope of business.

There are no formal requirements for forming a sole proprietorship.

Draw a chart comparing the formation,liability,taxation,and management of partnerships,limited partnerships,corporations,and limited liability companies.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 17: Governance and Structure: Forms of Doing Business

Limited partnership interests are generally not transferable.

Which of the following not‾\underline{\text{not}}not​ be used to pierce the corporate veil?

A limited liability company can be created informally.

Limited partners can consult and advise with the general partner and still retain limited liability.

Lawyers for corporations are not required to reveal investigations of misconduct in the corporation to the CEO.

Shareholders generally elect the officers of the corporation.

Limited partners:

Oil company executives are the highest paid CEOs annually.

The corporate veil can be pierced for inadequate capitalization.

A limited liability company:

A partner's interest:

Transfer of a partner's interest:

A partnership must file a separate tax return and pay taxes on its income.

Upon termination of both limited and general partnerships,outside creditors have first priority in terms of asset distribution.

Which of the following activities will cause a limited partner to lose his limited liability status?

Partners are not liable for each others' torts committed in the scope of business.

There are no formal requirements for forming a sole proprietorship.

Draw a chart comparing the formation,liability,taxation,and management of partnerships,limited partnerships,corporations,and limited liability companies.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Which of the following $\underline{\text{not}}$ be used to pierce the corporate veil?