Question 1

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 2

Transfer restrictions:

Accepted Answer

A) must be noted on the stock to be valid. 
B) are generally valid only in family-owned corporations. 
C) cannot be used to satisfy SEC restrictions. 
D) None of the above 
A) must be noted on the stock to be valid. 
B) are generally valid only in family-owned corporations. 
C) cannot be used to satisfy SEC restrictions. 
D) None of the above

Question 3

Partners' personal assets:

Accepted Answer

A) cannot be reached by partnership creditors. 
B) cannot be reached by partnership creditors unless partnership assets are exhausted. 
C) can only be reached by personal creditors. 
D) None of the above 
A) cannot be reached by partnership creditors. 
B) cannot be reached by partnership creditors unless partnership assets are exhausted. 
C) can only be reached by personal creditors. 
D) None of the above

Question 4

State statutes covering LLPs typically state that if the procedures for forming an LLP are not complied with, the business will be treated as a(n):

Accepted Answer

A) limited partnership. 
B) general partnership. 
C) S corporation. 
D) non-recognized legal entity. 
A) limited partnership. 
B) general partnership. 
C) S corporation. 
D) non-recognized legal entity.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When a general partnership is dissolved, which of the following is a correct statement?​

Accepted Answer

A) The partnership is terminated. 
B) The partners no longer have personal liability for the partnership debts. 
C) The partners no longer have authority to contract. 
D) Some of the partners may have the right to continue the partnership. 
A) The partnership is terminated. 
B) The partners no longer have personal liability for the partnership debts. 
C) The partners no longer have authority to contract. 
D) Some of the partners may have the right to continue the partnership.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Piercing the corporate veil has been used for purposes of imposing CERCLA liability.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) wages or rent. 
B) not shared equally. 
C) income. 
D) All of the above 
A) wages or rent. 
B) not shared equally. 
C) income. 
D) All of the above

Question 10

A corporation is said to have double taxation. What is meant by this statement?

Accepted Answer

A) The corporation pays double the tax rate of individuals. 
B) The corporation pays taxes on its income and its shareholders pay taxes on their dividends from the corporation. 
C) Both a and b 
D) None of the above 
A) The corporation pays double the tax rate of individuals. 
B) The corporation pays taxes on its income and its shareholders pay taxes on their dividends from the corporation. 
C) Both a and b 
D) None of the above

Question 11

Which of the following cannot 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 12

The income of the sole proprietor's business is reported as a separate entity's income.

Accepted Answer

A) True 
 B)False

Question 13

Jim Braun has been a partner in a real estate investment partnership with Alicia Kaynes for 10 years. When the real estate market took a downward turn, one of their investments in a strip mall became a cash drain. Jim refused to contribute any more cash and withdrew from the partnership. Alicia was left to manage the property. Before she could sell it, Alicia had put in $125,000 into the strip mall property. Following the sale, Alicia demanded one-half of the $125,000 from Jim. Jim said he is not liable because he left the partnership.

Accepted Answer

A) Jim is correct; he withdrew and his liability ended. 
B) Alicia is correct; Jim owes her his share of what she paid. 
C) Neither is correct; how much Jim owes depends on when he withdrew. 
D) None of the above 
A) Jim is correct; he withdrew and his liability ended. 
B) Alicia is correct; Jim owes her his share of what she paid. 
C) Neither is correct; how much Jim owes depends on when he withdrew. 
D) None of the above

Question 14

Which of the following is a requirement under Sarbanes-Oxley?

Accepted Answer

A) The majority of the board of directors must be independent. 
B) No inside officers can serve on the board of directors. 
C) Lawyers must blow the whistle on their corporate clients engaged in fraud. 
D) All of the above 
A) The majority of the board of directors must be independent. 
B) No inside officers can serve on the board of directors. 
C) Lawyers must blow the whistle on their corporate clients engaged in fraud. 
D) All of the above

Question 15

Which of the following forms of doing business has/have double taxation as opposed to flow-through taxation?​

Accepted Answer

A) S corporations 
B) C corporations 
C) Sole proprietorships 
D) All of the above 
A) S corporations 
B) C corporations 
C) Sole proprietorships 
D) All of the above

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Partnership property:

Accepted Answer

A) is always personal property. 
B) is owned by the partners as tenants in partnership. 
C) can be pledged to a partner's personal creditor. 
D) All of the above 
A) is always personal property. 
B) is owned by the partners as tenants in partnership. 
C) can be pledged to a partner's personal creditor. 
D) All of the above

Question 18

A general partner in a limited partnership must obtain consent from the limited partners before:

Accepted Answer

A) admitting a new general partner. 
B) admitting a new limited partner. 
C) selling all the partnership assets. 
D) all of the above require consent from the limited partners. 
A) admitting a new general partner. 
B) admitting a new limited partner. 
C) selling all the partnership assets. 
D) all of the above require consent from the limited partners.

Question 19

The sole proprietor's personal assets are subject to business creditor attachment.

Accepted Answer

A) True 
 B)False

Question 20

While the UPA was adopted in almost all states, the RUPA has been adopted by all states since 2006.

Accepted Answer

A) True 
 B)False

A director who usurps a corporate opportunity:

Transfer restrictions:

Partners' personal assets:

State statutes covering LLPs typically state that if the procedures for forming an LLP are not complied with, the business will be treated as a(n):

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

When a general partnership is dissolved, which of the following is a correct statement?

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

Piercing the corporate veil has been used for purposes of imposing CERCLA liability.

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

A corporation is said to have double taxation. What is meant by this statement?

Which of the following cannot be used to pierce the corporate veil?

The income of the sole proprietor's business is reported as a separate entity's income.

Which of the following is a requirement under Sarbanes-Oxley?

Which of the following forms of doing business has/have double taxation as opposed to flow-through taxation?

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

Partnership property:

A general partner in a limited partnership must obtain consent from the limited partners before:

The sole proprietor's personal assets are subject to business creditor attachment.

While the UPA was adopted in almost all states, the RUPA has been adopted by all states since 2006.

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

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 Rights

Business Marketing and Products: Ads and Product Safety

Business Competition: Antitrust Law

Business and Intellectual Property Law

Agency Law

Governance and Regulation: Securities Law

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

Filters

Exam 16: Governance and Structure: the Law of Business Associations

A director who usurps a corporate opportunity:

Transfer restrictions:

Partners' personal assets:

State statutes covering LLPs typically state that if the procedures for forming an LLP are not complied with, the business will be treated as a(n):

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

When a general partnership is dissolved, which of the following is a correct statement?​

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

Piercing the corporate veil has been used for purposes of imposing CERCLA liability.

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

A corporation is said to have double taxation. What is meant by this statement?

Which of the following cannot be used to pierce the corporate veil?

The income of the sole proprietor's business is reported as a separate entity's income.

Which of the following is a requirement under Sarbanes-Oxley?

Which of the following forms of doing business has/have double taxation as opposed to flow-through taxation?​

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

Partnership property:

A general partner in a limited partnership must obtain consent from the limited partners before:

The sole proprietor's personal assets are subject to business creditor attachment.

While the UPA was adopted in almost all states, the RUPA has been adopted by all states since 2006.

Introduction to Law

Business Ethics and Social Responsibility

The Court System and Dispute Resolution

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 Rights

Business Marketing and Products: Ads and Product Safety

Business Competition: Antitrust Law

Business and Intellectual Property Law

Agency Law

Governance and Regulation: Securities Law

Business and Employees: Employment Regulation

Business and Employees: Employment Discrimination

Filters

When a general partnership is dissolved, which of the following is a correct statement?

Which of the following forms of doing business has/have double taxation as opposed to flow-through taxation?