QUIZ Google 1 - law PDF

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A partnership involves three essential elements. Which of the following IS NOT one of those elements? a. An equal right in the management of the business. b. Limited liability for breach of contract. c. A joint ownership of the business. d. Shared profits and losses. The general rule provided for by...

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1. A partnership involves three essential elements. Which of the following IS NOT one of those elements? a. An equal right in the management of the business. b. Limited liability for breach of contract. c. A joint ownership of the business. d. Shared profits and losses. 2. The general rule provided for by the Uniform Partnership Act (UPA) with regards to profits and losses of partnerships is: a. partners may assign their interests. b. profits shall be shared according to seniority of partner. c. profits shall be shared among initial partners only. d. profits and losses shall be equally shared. 3. Under the UPA, the general rule concerning management rights is: a. partners have equal rights in management regardless of the proportional size of their partnership interest. b. partners have management rights only to the extent that they have contributed assets to the partnership. c. senior partners only have management rights. d. only the managing partner has partnership rights. 4. Which of the following actions requires the unanimous consent of all partners before it may be undertaken? a. Hiring a new employee. b. Purchasing new office equipment. c. Admitting new partners. d. Reviewing partnership accounts. 5. Bart and Lisa are partners in a landscaping business, "B&L Landscaping." Bart and Lisa own several lawnmowers and assorted other equipment. As a general rule, what property rights does each have in this equipment? a. The senior partner owns all the property. b. They own only their personal property, not partnership property. c. They are co-owners of this partnership property. d. They co-own this partnership property only if the partnership is a partnership at will. 6. The members of a limited partnership include: a. general and limited partners. b. members. c. accreditors. d. sole proprietors. 7. A corporation is a legal entity: a. created by the local government. b. created and recognized by an entrepreneurial agency. c. managed internally by the federal government. d. created and recognized by state law. 8. The responsibility for overall management of a corporation belongs to: a. the chief financial officer. b. the employees. c. the board of directors. d. the shareholders.

9. The older shareholder form of business organizations which developed in Europe in the late 17th century was known as: a. a monarchial company. b. joint stock companies. c. limited liability partnerships. d. collegiate companies. 10. In the famous 1819 Dartmouth College Case, the Supreme Court held: a. alien corporations could be sued in the U.S. b. the college did not constitute a corporation. c. corporate shareholders could not, simultaneously, be professors and employees. d. the state legislature could not revise or impair the original corporate charter of the college. 11. The constitutional rights of corporations: a. are the same as those held by a natural (living) person. b. are weaker than those of a natural person. c. do not exist. Only individuals working for corporations have constitutional rights. d. are significantly stronger than those held by natural persons. 12. A dividend may be defined as: a. a distribution of corporate profits to shareholders in proportion to their ownership stake. b. the document issued by a state agency authorizing a corporation. c. a portion of the corporation's profits which are not paid out. d. the rules which govern the management of a corporation. 13. Articles of incorporation contain: a. a set of governing rules adopted by a corporation. b. resolutions of the board of directors. c. information about the corporation, including its organization and functions. d. the minutes of meetings of the board of directors. 14. An example of a close corporation would be: a. the U.S. Postal Service. b. Microsoft. c. IBM. d. a corporation owned by 5 members of family. 15. For simplicity sake, an "S" corporation could be defined as: a. a corporation regulated by the securities industry. b. a corporation whose shareholders have limited liability but are taxes as if they were partners, not shareholders. c. a corporations whose shareholders are taxed like shareholder but who face full, significant liability. d. a corporation composed entirely of licensed professionals. 16. A prospectus is: a. a person who locates potential investors for a new corporation. b. a document describing the financial operations of a corporation. c. a limited liability corporation. d. a kind of a fixed-dollar investment.

17. The first step in the incorporation process is: a. to draft a prospectus. b. to draft corporate by-laws. c. to decide which state to incorporate in. d. to complete the articles of incorporation. 18. Which of the following are, generally speaking, NOT included in the articles of incorporation? a. The duration of the corporation. b. The employment policy of the corporation. c. The nature and purpose of the corporation. d. The address of the corporation's registered agent. 19. Stock may be described as: a. a debt owed by the government to the shareholder. b. a debt owed by the corporation to the shareholder. c. an ownership interest in the corporation. d. a document describing the ownership and management structure of the corporation. 20. The rule concerning the ability of individual directors of a corporation to act as agents is: a. they cannot do it. b. they may act as agents, so long as the articles of incorporation provide for this. c. they always act as agents in their individual capacities. d. they act as agents only when, individually, they conduct corporate business. 21. The best definition of a quorum is which of the following? a. A quorum is 51% of all shareholders. b. A quorum is 66% of all directors. c. A quorum is the number of members of a decision-making body that must be present before business may be transacted. d. A quorum is the number of voters who must agree to a revision before corporate by-laws may be changed or otherwise amended. 22. The board of directors DOES NOT have responsibility over which of the following areas? a. Financial decisions such as issuing shares of stock or bond. b. The appointment, supervision, and removal of corporate officers. c. The appointment, supervision, and removal of employees generally. d. The declaration and payment of corporate dividends. 23. The fiduciary duties of directors and of corporate officers include the duty of loyalty and: a. the duty to tender. b. the duty of care. c. the duty of revision. d. the duty of derivation.

24. The business judgment rule states that: a. corporate management is immune from liability for actions that lead to losses or damages if the management acted in good faith and not ultra vires. b. shareholders may be personally liable for the negligent torts committed by the directors of a corporation if these torts are the result of a lack of oversight. c. directors may never be liable for harms or losses, so long as they have attended, and agreed to, corporate actions. d. only officers, but not directors, may be liable for some harms caused by a corporation. 25. Which of the following is a major power held by shareholders? a. The power to appoint corporate officers. b. The power to manage and supervise daily operations of the corporation. c. The power to declare dividends. d. The power to amend articles of incorporation or by-laws. 26. Suzy signs a written agreement with Phillip, giving Phillip the right to cast Suzy's votes for a certain group of people nominated for the Syllibar Corporation board of directors. This agreement between Suzy and Phillip is known as: a. a derivative agreement. b. a proxy. c. a subpoena. d. cumulative voting. 27. The reason why most states either permit or require the use of cumulative voting when electing directors is: a. to reduce fraud among voters. b. to allow minority shareholders a greater chance at representation on the board of directors. c. to allow corporate officers to manage elections more easily and with greater assurance of the outcome. d. to allow directors a greater input into the election process. 28. Lysco, Inc. gives to all 15,000 of its shareholders the right to purchase newly issued shares of Lysco stock in proportion to the percentage of shares they currently own, and before anyone else is offered the shares. This right is known as: a. a preemptive right. b. a proxy right. c. a warrant agreement. d. an attachment right. 29. Which of the following IS NOT a proper source for the payment of dividends? a. Retained earning of a corporation. b. Current net profits of a corporation. c. Employee pension funds managed by a corporation. d. Surpluses held by a corporation. 30. In the famous case of Dodge v. Ford Motor Co., the court held that: a. Ford had to offer its shareholders preemptive rights. b. Ford failed to use stock warrants in the appropriate manner, as authorized by Michigan state statutes. c. Ford's refusal to pay a dividend was an abuse of managerial discretion. d. Ford violated its shareholders' inspection rights.

31. The person who is appointed to wind up corporate affairs and to liquidate the business assets of a corporation is known as: a. the trustor. b. the receiver. c. the retainer. d. the director-in-trust. 32. The case of Black v. Graham involved: a. a court-ordered dissolution of a corporation. b. an involuntary bankruptcy of a corporation. c. a right of first refusal concerning the sale of corporate assets. d. a wrongful refusal of a corporation to allow a shareholder to exercise her inspection rights. 33. When a corporation suffers a wrong as a result of actions taken by either corporate officers or directors, one effective and appropriate way to address the harm is: a. through the issuance of preemptive rights. b. through use of stock warrants. c. through a shareholder's derivative suit. d. through shareholders voting in new officers. JAWAPAN TAKDE LAGI

Partners who are not known to the public and take no active part in the business are called ostensible partners. dormant partners silent partners secret partners.

In which type of partnership is every partner responsible for the debts and wrongdoings of every other partner while transacting business of the partnership? co-partnership general partnership limited partnership unlimited partnership

A corporation established in strict compliance with the law is called a(n) de jure corporation de facto corporation eleemosynary corporation. domestic corporation

The officers responsible for the daily operations of a corporation are chosen by the stockholders. board of directors. preferred stockholders. managers.

Profits distributed by a corporation to its stockholders are called shares. derivatives. capital. dividends.

A franchiser and franchisee are considered to be partners. co-venturers. independent contractors. a syndicate.

When a partnership is dissolved, a ____________ period occurs first. winding-up winding-down liquidation dissociation

To avoid double taxation, a small corporation can elect to be treated as a close corporation. C corporation. foreign corporation. S corporation.

Which of the following is a nonpartnership form of business with the tax benefits of a partnership and the limited liability benefits of a corporation? LLC LLP RLLP LLLP

The least formal type of business organization is partnership. franchise. joint venture. sole proprietorship.

_______ invest money or other property in a business, but are not liable for the debts or obligations of the partnership. Limited partners General partners Limited liability partners Nominal parnters

An act or occurrence that requires the partnership to eventually terminate is called _______. winding up period dissolution liquidated incorporation

A corporation is owned by _______ who are not personally responsible for the debts and liabilities of the corporation. limited partners shareholders charters promoters

A corporation that is created for charitable or benevolent purposes is known as a _______. de facto corporation foreign corporation domestic corporation not-for-profit corporation

An enterprise relationship in which two or more people combine their labor or property for a single business undertaking is called a _______. partnership joint venture franchise limited liability company

JAWAPAN 1. Dormant partners 2. General partnership 3. De jure corporation 4. Board of directors 5. Dividends 6. Independent contractors 7. Winding up 8. S corporation 9. LLC 10. Sole proprietorship 11. Limited partnership 12. Dissolution 13. Shareholders 14. Not-for-profit corporation 15. Joint venture...