Question 1

Close corporations have less formality in their operational requirements.

Accepted Answer

A) True 
 B)False

Question 2

Utah Light,Inc.has a takeover offer from Cal Corp.Utah Light is experiencing difficulty with earnings and its share price has dropped from $32 to $19.Cal Corp's offer is for $23 per share.Utah Light's board feels that because of pending plans and developing assets,it should not accept the offer.Must the board accept the offer?

Accepted Answer

The answer of Utah Light,Inc.has a takeover offer from Cal...

Question 3

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

Question 4

Limited partners who act as guarantors for partnership notes lose their limited partner status.

Accepted Answer

A) True 
 B)False

Question 5

Directors are personally liable for errors in business judgment.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following $\underline{\text{not}}$ required for the certificate of limited partnership (under RULPA)?

Accepted Answer

A) names of the limited partners 
B) capital contributions of the partners 
C) the profit-sharing arrangement 
D) None of the above are required.

Question 7

Sharing of profits is prima facie evidence that a partnership exists.

Accepted Answer

A) True 
 B)False

Question 8

A Subchapter S or S Corporation is:

Accepted Answer

A) a special class of close corporation under the MBCA. 
B) an IRS tax treatment option for corporations owned by a limited number of shareholders. 
C) a not-for-profit corporation. 
D) none of the above

Question 9

Under Sarbanes-Oxley,codes of ethics must cover financial reporting standards.

Accepted Answer

A) True 
 B)False

Question 10

"Say on pay" gets its name from stakeholders getting to vote on executive compensation.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not a method for forming a partnership?

Accepted Answer

A) by agreement 
B) by estoppel 
C) by implication 
D) by transfer

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

Limited liability companies,limited liability partnerships,limited partnerships,general partnerships,sole proprietorships and S corporations all have flow-through income and loss provisions for tax purposes.

Accepted Answer

A) True 
 B)False

Question 14

Ann Archer purchased shares from XYZ Corp.for $10.The par value of the shares is $5.What is the amount of water per share in the shares?

Accepted Answer

A) $0 
B) $5 
C) $10 
D) $1

Question 15

An assignment of a limited partner's interest terminates the limited partnership.

Accepted Answer

A) True 
 B)False

Question 16

Limited partners have liability limited to the amount of their contribution to the partnership.

Accepted Answer

A) True 
 B)False

Question 17

Under Sarbanes-Oxley,which of the following is true?

Accepted Answer

A) Companies must have a separate code of ethics for financial reporting. 
B) Boards of directors are not subject to the act's provisions. 
C) The act does not cover publicly traded companies. 
D) both b and c

Question 18

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

Question 19

When shareholders get to vote on executive compensation it is referred to as what?

Accepted Answer

A) Pay-to-play 
B) Say-on-pay 
C) Day-of-pay 
D) Play-on-payday

Question 20

Greg Knowles owns a business,Clean and Paint.Clean and Paint has 47 employees,equipment worth $350,000,and signed contracts for work that total $450,000.Tragically,Greg has a massive heart attack and passes away.Greg leaves behind his wife and three children.Which of the following is correct?​

Accepted Answer

A) ​The equipment will be sold, the business liquidated, and proceeds distributed first to the employees. 
B) ​The business could be liquidated or continued by Greg's heirs. 
C) The business is dissolved and cannot continue. 
D) The employees now own the business.

Exam 17: Governance and Structure: Forms of Doing Business

Close corporations have less formality in their operational requirements.

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

Limited partners who act as guarantors for partnership notes lose their limited partner status.

Directors are personally liable for errors in business judgment.

Which of the following $\underline{\text{not}}$ required for the certificate of limited partnership (under RULPA) ?

Sharing of profits is prima facie evidence that a partnership exists.

A Subchapter S or S Corporation is:

Under Sarbanes-Oxley,codes of ethics must cover financial reporting standards.

"Say on pay" gets its name from stakeholders getting to vote on executive compensation.

Which of the following is not a method for forming a partnership?

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

Limited liability companies,limited liability partnerships,limited partnerships,general partnerships,sole proprietorships and S corporations all have flow-through income and loss provisions for tax purposes.

Ann Archer purchased shares from XYZ Corp.for $10.The par value of the shares is $5.What is the amount of water per share in the shares?

An assignment of a limited partner's interest terminates the limited partnership.

Limited partners have liability limited to the amount of their contribution to the partnership.

Under Sarbanes-Oxley,which of the following is true?

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

When shareholders get to vote on executive compensation it is referred to as what?

Greg Knowles owns a business,Clean and Paint.Clean and Paint has 47 employees,equipment worth $350,000,and signed contracts for work that total $450,000.Tragically,Greg has a massive heart attack and passes away.Greg leaves behind his wife and three children.Which of the following is correct?

Exam 17: Governance and Structure: Forms of Doing Business

Close corporations have less formality in their operational requirements.

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

Limited partners who act as guarantors for partnership notes lose their limited partner status.

Directors are personally liable for errors in business judgment.

Which of the following not‾\underline{\text{not}}not​ required for the certificate of limited partnership (under RULPA) ?

Sharing of profits is prima facie evidence that a partnership exists.

A Subchapter S or S Corporation is:

Under Sarbanes-Oxley,codes of ethics must cover financial reporting standards.

"Say on pay" gets its name from stakeholders getting to vote on executive compensation.

Which of the following is not a method for forming a partnership?

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

Limited liability companies,limited liability partnerships,limited partnerships,general partnerships,sole proprietorships and S corporations all have flow-through income and loss provisions for tax purposes.

Ann Archer purchased shares from XYZ Corp.for $10.The par value of the shares is $5.What is the amount of water per share in the shares?

An assignment of a limited partner's interest terminates the limited partnership.

Limited partners have liability limited to the amount of their contribution to the partnership.

Under Sarbanes-Oxley,which of the following is true?

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

When shareholders get to vote on executive compensation it is referred to as what?

Greg Knowles owns a business,Clean and Paint.Clean and Paint has 47 employees,equipment worth $350,000,and signed contracts for work that total $450,000.Tragically,Greg has a massive heart attack and passes away.Greg leaves behind his wife and three children.Which of the following is correct?​

Which of the following $\underline{\text{not}}$ required for the certificate of limited partnership (under RULPA) ?

Greg Knowles owns a business,Clean and Paint.Clean and Paint has 47 employees,equipment worth $350,000,and signed contracts for work that total $450,000.Tragically,Greg has a massive heart attack and passes away.Greg leaves behind his wife and three children.Which of the following is correct?