FORMS OF BUSINESS ORGZ practice questins

44 terms by rkaiser1

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Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up her business as a sole proprietorship would be:

its greater organizational flexibility.

Clive sells Direct Marketing Enterprises, a sole proprietorship to Sarah? This is a transfer of

the ownership of the business.

John owns Java Coffee, a sole proprietorship. John's liability is:

unlimited.

Bob and Clara decide to do business as Marketing and Promotion Services, a partnership. To be a partnership, this association can result from an agreement that is:

oral, written, or implied by conduct.

Dave and Dan are partners in First-Place Athletic Supplies, which sells sports equipment. Dave manages the business. Unless the partnership agreement states otherwise, Dave is:

not entitled to compensation for his efforts.

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of Fay's admission comes due. Fay is:

only liable for the debt up to the amount of her capital contribution to Global Associates.

Cliff, Dave, and Elton do business as Organic Valley Farm, a partnership. Cliff's relationship to the partnership ends, but it continues to do business. Cliff's ceasing to be involved with Organic Valley Farm is termed

dissociation.

Maury, Neil, and Ogden want to form a limited partnership for their photography business. Their organization must be:

at least one general partner and one limited partner.

Deb is considering forms of business organization for Deb's Designs, a clothing design firm. An advantage of a limited liability partnership is that partners can avoid personal liability for:

other partners' wrongdoing.

Brad is a general partner and Carlos and Dora are limited partners in Eastside Physicians, a medical clinic and limited partnership. Carlos's assignment of his interest in Eastside to Good Credit Corporation results in:

nothing with respect to Eastside's existence

Brad is a general partner and Carlos and Dora are limited partners in Eastside Physicians, a medical clinic and limited partnership. Eastside is dissolved and its assets are collected, liquidated, and distributed. These actions result in

the termination of Eastside's legal existence

Bruce is a general partner in Capitol Realty, LLLP, which cannot pay its debts. Bruce is personally liable for the debts

to the extent of his capital contribution.

Blue is considering forms of business organization for Consult Me!, his website consulting firm. Most states require that a limited liability company have at least:

one member

Don is considering forms of business organization for his financial advisory firm. Like most states, Don's state requires that to form a limited liability company, he must file with a central state agency:

articles of organization.

Energy Resources, LLC, rather than distribute its profits to its members, Energy

a corporation.

Wallace is a member of the Wallace Consulting, LLC, a limited liability company. Wallace is liable for Wallace Consulting's debts

to the extent of his capital contribution

Tech, LLC is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is governed by:

the applicable state LLC statute.

Waste Management Services, LLC is a member-managed limited liability company. If the law in Waste's state is like the law in most states, unless the members have agreed otherwise, voting rights are apportioned according to:

capital contributions.

Fritz is interested in buying a franchise from Franchise, Inc. This transaction, like other franchise deals, is regulated to protect

prospective franchisees from dishonest franchisors.

Nicholas is interested in buying a franchise from Waltz, Inc. For Nicholas to make an informed decision concerning this purchase, Waltz must disclose in writing or online:

material facts such as the basis of projected earnings figures.

The officers of a corporation are?

chosen by the board of directors

If a court determines a managers corporate decision amounted to self-dealing?

the business judgement rule will not apply

Term to use when describing managements duty to its shareholdes?

fiduciary duty

Tina owns United Enterprises, a sole proprietorship. In a sole propriotership, the liability of the owner is?

unlimitied

Carl sells direct marketing enterprises, a sole propritoship to Eve. This is a transfer of?

the ownership of the business

Tom is a registered agent for Telecorp inc., which incorporated in Delware. As a registered agent, Tom?

receives legal documents on behalf of telecorp

Bob and Jenny act as the incorporators for National Sales inc. After the first board of directors is chosen, subsequent directors are elected by a majority vote of nationals?

shareholders

Joe and Diana form Goods Inc. Ultimate responsibility for policymaking decisions neccessary to the mgt of corporate affairs rests with Goods Incs' ?

board of directors

George is a director if home appliances Incs. As a director, with respect to the corporation, Georgia is?

a fiduciary

The most common form of business organization in the U.S.?

sole proprietorship

The advantage of a corporation over a partnership is?

sjares are easily transferable to another person, perpetual existence and easier to raise funds

Charles and Ellen, an unmarried couple, run an ice cream store. The business is not incorporated. Their business is a?

partnership

What would be evidence that two people intend to be partners?

agreement to share profits, referring to each others as partners and agreeing to share business losses

Incorporation protects?

shareholders aganist personal liability for the debts of the company

Frank and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is a legal entity created and recognized by:

state law

Paul and Quinn want to form and do business as River Tours Corporation. A corporation can consist of:

one or more natural persons.

Irene and Jason are the shareholders and directors of Clean Custodial Corporation. Lily and Mary are Clean's officers. As with other corporations, the responsibility for the strategic management of Clean rests with:

board of directors

Raw Resources Corporation authorizes Steve, its employee, to oversee its mining operation. In the course of this employment, Steve disposes of the mine's waste illegally. Liability for this crime most likely rests with

raw and steve

Scientific Discovery Corporation makes an attempt to incorporate for a purpose other than making a profit. Scientific is:

a nonprofit corporation

To qualify as a professional corporation, Medical Clinic, P.C

must be a corporation formed by professionals.

Rosa and Sean are directors of Tell, Inc. The right of Rosa and Sean to be notified of special meetings of the board is the right to:

participation.

Maury, Neil, and Ogden are members of the board of directors of Integral Corporation. A quorum is the minimum number of these directors:

who must be present for the board to validly transact business

Thomas Power Products Corporation permits its directors to be elected by cumulative voting. This:

allows minority shareholders to be represented on the board

In all states, Sports Club Company and other corporations can pay dividends from

retained earnings.

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