Question 1

Equity securities are:

Accepted Answer

A)  loans taken out by the corporation 
B)  only owned by shareholders in public corporations 
C)  only owned by shareholders in close corporations 
D)  usually in the form of shares of stock for a corporation 
E)  always regulated by the federal government 
A)  loans taken out by the corporation 
B)  only owned by shareholders in public corporations 
C)  only owned by shareholders in close corporations 
D)  usually in the form of shares of stock for a corporation 
E)  always regulated by the federal government D

Question 2

A corporation is sometimes called an artificial person.

Accepted Answer

A) True 
 B)False  True

Question 3

Each partner in a partnership is the agent of the other partners and is responsible for the torts of the other partners if committed in the course and scope of the partnership.

Accepted Answer

A) True 
 B)False  True

Question 4

All debts are dischargeable in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

In a limited liability partnership, partners have limited liability as long as they do not participate in the management of the business.

Accepted Answer

A) True 
 B)False

Question 6

In a partnership, each of the partners is liable to third parties for debts of the partnership in proportion to his or her ownership interest in the partnership.

Accepted Answer

A) True 
 B)False

Question 7

A non-profit corporation

Accepted Answer

A)  cannot generate any income 
B)  always has tax exempt status 
C)  cannot distribute any profit to its members 
D)  both b and c 
E)  all of the above 
A)  cannot generate any income 
B)  always has tax exempt status 
C)  cannot distribute any profit to its members 
D)  both b and c 
E)  all of the above

Question 8

The term "securities" is used to describe:

Accepted Answer

A)  a financial interest in a business 
B)  only shares of stock in a corporation 
C)  only a partnership interest in a general partnership 
D)  only a partnership interest in a limited partnership 
E)  none of the above 
A)  a financial interest in a business 
B)  only shares of stock in a corporation 
C)  only a partnership interest in a general partnership 
D)  only a partnership interest in a limited partnership 
E)  none of the above

Question 9

A general partnership always has a managing partner.

Accepted Answer

A) True 
 B)False

Question 10

Exempt assets must be turned over to the Bankruptcy trustee and are used to satisfy the debts of the person filing bankruptcy.
Multiple Choice

Accepted Answer

A) True 
 B)False

Question 11

The owners of a corporation are known as:

Accepted Answer

A)  officers 
B)  shareholders 
C)  directors 
D)  members 
E)  none of the above 
A)  officers 
B)  shareholders 
C)  directors 
D)  members 
E)  none of the above

Question 12

Bankruptcy is governed primarily by federal law.

Accepted Answer

A) True 
 B)False

Question 13

Blue Sky laws refer to:

Accepted Answer

A)  federal securities laws 
B)  state securities laws 
C)  federal bankruptcy laws 
D)  state bankruptcy laws 
E)  none of the above 
A)  federal securities laws 
B)  state securities laws 
C)  federal bankruptcy laws 
D)  state bankruptcy laws 
E)  none of the above

Question 14

A sole proprietorship

Accepted Answer

A)  consists of a business owned and operated by one individual 
B)  is a business form that protects the personal assets of the owner 
C)  is a business form that requires several formalities 
D)  is a business form that pays taxes as a business 
E)  all of the above 
A)  consists of a business owned and operated by one individual 
B)  is a business form that protects the personal assets of the owner 
C)  is a business form that requires several formalities 
D)  is a business form that pays taxes as a business 
E)  all of the above

Question 15

Corporations are formed by filing which document with the secretary of state?

Accepted Answer

A)  bylaws 
B)  articles of incorporation 
C)  stock permit 
D)  partnership agreement 
E)  shareholder agreement 
A)  bylaws 
B)  articles of incorporation 
C)  stock permit 
D)  partnership agreement 
E)  shareholder agreement

Question 16

Actual authority of partners to enter contracts on behalf of the partnership

Accepted Answer

A)  means that authority is implied because the conduct of the parties have reasonably led third persons to believe that such authority exists 
B)  means that other partners have approved the contract 
C)  always exists for all partners 
D)  all of the above 
E)  none of the above 
A)  means that authority is implied because the conduct of the parties have reasonably led third persons to believe that such authority exists 
B)  means that other partners have approved the contract 
C)  always exists for all partners 
D)  all of the above 
E)  none of the above

Question 17

A limited partnership must have at least one general partner.

Accepted Answer

A) True 
 B)False

Question 18

A limited liability company the individuals who own the company are generally not personally liable for the company debts.

Accepted Answer

A) True 
 B)False

Question 19

In a limited partnership

Accepted Answer

A)  all partners have limited liability 
B)  only general partners have limited liability 
C)  only limited partners have limited liability 
D)  limited partners have no liability 
E)  no partner has any liability 
A)  all partners have limited liability 
B)  only general partners have limited liability 
C)  only limited partners have limited liability 
D)  limited partners have no liability 
E)  no partner has any liability

Question 20

Which of the following factors are considered when one tries to pierce the corporate veil?

Accepted Answer

A)  did the corporation observe corporate formalities such as holding meetings? 
B)  did the corporation keep separate bank accounts? 
C)  were corporate funds used for corporate and not personal purposes? 
D)  was the corporation undercapitalized? 
E)  all of the above. 
A)  did the corporation observe corporate formalities such as holding meetings? 
B)  did the corporation keep separate bank accounts? 
C)  were corporate funds used for corporate and not personal purposes? 
D)  was the corporation undercapitalized? 
E)  all of the above.

Equity securities are:

A corporation is sometimes called an artificial person.

Each partner in a partnership is the agent of the other partners and is responsible for the torts of the other partners if committed in the course and scope of the partnership.

All debts are dischargeable in bankruptcy.

In a limited liability partnership, partners have limited liability as long as they do not participate in the management of the business.

In a partnership, each of the partners is liable to third parties for debts of the partnership in proportion to his or her ownership interest in the partnership.

A non-profit corporation

The term "securities" is used to describe:

A general partnership always has a managing partner.

Exempt assets must be turned over to the Bankruptcy trustee and are used to satisfy the debts of the person filing bankruptcy. Multiple Choice

The owners of a corporation are known as:

Bankruptcy is governed primarily by federal law.

Blue Sky laws refer to:

A sole proprietorship

Corporations are formed by filing which document with the secretary of state?

Actual authority of partners to enter contracts on behalf of the partnership

A limited partnership must have at least one general partner.

A limited liability company the individuals who own the company are generally not personally liable for the company debts.

In a limited partnership

Which of the following factors are considered when one tries to pierce the corporate veil?

Introduction to Law

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Finding the Law: Legal Research

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Wills, Trusts, and Probate

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Exam 11: The Law of Business Organizations and Bankruptcy

Equity securities are:

A corporation is sometimes called an artificial person.

Each partner in a partnership is the agent of the other partners and is responsible for the torts of the other partners if committed in the course and scope of the partnership.

All debts are dischargeable in bankruptcy.

In a limited liability partnership, partners have limited liability as long as they do not participate in the management of the business.

In a partnership, each of the partners is liable to third parties for debts of the partnership in proportion to his or her ownership interest in the partnership.

A non-profit corporation

The term "securities" is used to describe:

A general partnership always has a managing partner.

Exempt assets must be turned over to the Bankruptcy trustee and are used to satisfy the debts of the person filing bankruptcy. Multiple Choice

The owners of a corporation are known as:

Bankruptcy is governed primarily by federal law.

Blue Sky laws refer to:

A sole proprietorship

Corporations are formed by filing which document with the secretary of state?

Actual authority of partners to enter contracts on behalf of the partnership

A limited partnership must have at least one general partner.

A limited liability company the individuals who own the company are generally not personally liable for the company debts.

In a limited partnership

Which of the following factors are considered when one tries to pierce the corporate veil?

Introduction to Law

The Us Legal System

The Courts and Legal Personnel

Finding the Law: Legal Research

Using the Law: Analysis and Legal Writing

Constitutional Law

Tort Law, Workers Compensation, and Environmental Law

Family Law

Wills, Trusts, and Probate

Contract Law, Real Property Law, Intellectual Property, and Employment Law

Civil Procedure Before Trial

Alternative Dispute Resolution

Criminal Practice: Criminal Law and Juvenile Law

Criminal Procedure Before Trial

Rules of Evidence

The Trial

Sample Video Worksheets

Filters