Question 1

Pooling agreements are the same as voting trusts.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following forms of business organizations does $\underline{\text{not}}$ have the pass-through feature of income and losses?

Accepted Answer

A) partnership 
B) limited partnership 
C) S corporation 
D) corporation 
A) partnership 
B) limited partnership 
C) S corporation 
D) corporation

Question 3

Under Sarbanes-Oxley,loans to corporate officers are prohibited.

Accepted Answer

A) True 
 B)False

Question 4

Limited partnerships are taxed the same way as general partnerships.

Accepted Answer

A) True 
 B)False

Question 5

A partnership can only be formed voluntarily.

Accepted Answer

A) True 
 B)False

Question 6

A limited liability company can be created informally.

Accepted Answer

A) True 
 B)False

Question 7

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.​
-What amount will Becca declare on her income tax return from the LLC?​

Accepted Answer

A) ​$137,500 
B) ​the full $275,000 
C) nothing, because the LLC reports that income and pays the taxes 
D) the LLC must retain at least half of the $275,000 and Becca reports half of $137,500 
A) ​$137,500 
B) ​the full $275,000 
C) nothing, because the LLC reports that income and pays the taxes 
D) the LLC must retain at least half of the $275,000 and Becca reports half of $137,500

Question 8

Which of the following $\underline{\text{not}}$  required for the articles of incorporation?

Accepted Answer

A) names of incorporators 
B) capital stock structure 
C) names of board members 
D) All of the above are required. 
A) names of incorporators 
B) capital stock structure 
C) names of board members 
D) All of the above are required.

Question 9

Pooling agreements are:

Accepted Answer

A) illegal as against public policy. 
B) the same as voting trusts. 
C) valid if filed with the corporation's secretary. 
D) none of the above 
A) illegal as against public policy. 
B) the same as voting trusts. 
C) valid if filed with the corporation's secretary. 
D) none of the above

Question 10

Partners are mutual principals and agents.

Accepted Answer

A) True 
 B)False

Question 11

An inadequately capitalized corporation can have its corporate veil pierced.

Accepted Answer

A) True 
 B)False

Question 12

Dissolution:

Accepted Answer

A) is the same as termination. 
B) can result from a limited partner leaving the partnership. 
C) can result from the death of a partner. 
D) all of the above 
A) is the same as termination. 
B) can result from a limited partner leaving the partnership. 
C) can result from the death of a partner. 
D) all of the above

Question 13

In a limited partnership,there must be a least one general partner.

Accepted Answer

A) True 
 B)False

Question 14

Dissolution of a partnership is termination of a partnership.

Accepted Answer

A) True 
 B)False

Question 15

Alan Freeman is in the process of forming a corporation in order to protect himself from liability in the operation of his construction/development business.The business is incorporated on November 1,1986.However,Alan was anxious to get started on a townhouse development.He signed contracts with subcontractors for the project during September and October.Discuss Alan's liability before and after incorporation.

Accepted Answer

Alan is personally liable on the contrac

Question 16

A director who usurps a corporate opportunity:

Accepted Answer

A) will owe his/her corporation the profits from the opportunity. 
B) will not owe the profits to the corporation so long as the venture was disclosed in advance. 
C) has violated the business judgment rule. 
D) none of the above 
A) will owe his/her corporation the profits from the opportunity. 
B) will not owe the profits to the corporation so long as the venture was disclosed in advance. 
C) has violated the business judgment rule. 
D) none of the above

Question 17

Limited partners can take a management role and remain limited partners.

Accepted Answer

A) True 
 B)False

Question 18

The corporate veil can be pierced when:

Accepted Answer

A) there is only one shareholder in the corporation. 
B) the corporation was formed to avoid personal liability. 
C) the corporation has only preferred stock. 
D) none of the above 
A) there is only one shareholder in the corporation. 
B) the corporation was formed to avoid personal liability. 
C) the corporation has only preferred stock. 
D) none of the above

Question 19

The statutory agent is the party who will be served with lawsuits against the corporation.

Accepted Answer

A) True 
 B)False

Question 20

Only the general partner in a limited partnership has personal liability.

Accepted Answer

A) True 
 B)False

Pooling agreements are the same as voting trusts.

Which of the following forms of business organizations does $\underline{\text{not}}$ have the pass-through feature of income and losses?

Under Sarbanes-Oxley,loans to corporate officers are prohibited.

Limited partnerships are taxed the same way as general partnerships.

A partnership can only be formed voluntarily.

A limited liability company can be created informally.

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. -What amount will Becca declare on her income tax return from the LLC?

Which of the following $\underline{\text{not}}$ required for the articles of incorporation?

Pooling agreements are:

Partners are mutual principals and agents.

An inadequately capitalized corporation can have its corporate veil pierced.

Dissolution:

In a limited partnership,there must be a least one general partner.

Dissolution of a partnership is termination of a partnership.

A director who usurps a corporate opportunity:

Limited partners can take a management role and remain limited partners.

The corporate veil can be pierced when:

The statutory agent is the party who will be served with lawsuits against the corporation.

Only the general partner in a limited partnership has personal liability.

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

Pooling agreements are the same as voting trusts.

Which of the following forms of business organizations does not‾\underline{\text{not}}not​ have the pass-through feature of income and losses?

Under Sarbanes-Oxley,loans to corporate officers are prohibited.

Limited partnerships are taxed the same way as general partnerships.

A partnership can only be formed voluntarily.

A limited liability company can be created informally.

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.​ -What amount will Becca declare on her income tax return from the LLC?​

Which of the following not‾\underline{\text{not}}not​ required for the articles of incorporation?

Pooling agreements are:

Partners are mutual principals and agents.

An inadequately capitalized corporation can have its corporate veil pierced.

Dissolution:

In a limited partnership,there must be a least one general partner.

Dissolution of a partnership is termination of a partnership.

A director who usurps a corporate opportunity:

Limited partners can take a management role and remain limited partners.

The corporate veil can be pierced when:

The statutory agent is the party who will be served with lawsuits against the corporation.

Only the general partner in a limited partnership has personal liability.

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 forms of business organizations does $\underline{\text{not}}$ have the pass-through feature of income and losses?

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. -What amount will Becca declare on her income tax return from the LLC?

Which of the following $\underline{\text{not}}$ required for the articles of incorporation?