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Law 340 Midterm #2 Review Flashcards | StudBud
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Law 340 Midterm #2 Review
Law 340 Midterm #2 Review
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Review for Law 340 Midterm #2
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
Which business form needs to be approved by the state of formation?
Corporation
All of the above
Limited Partnership
Limited Liability Company (LLC)
2
A corporate director would breach their duty of loyalty if they did which of the following?
becomes a director of a noncompeting firm.
votes against a board action that loses the corp money
votes for a board action that causes the corp to lose money
buys stock in a competing firm.
3
A, B and C are general partners. Later D is added. D's liability for debts before admission:
limited to his personal assets
limited to his capital contribution to the parnership
nothing
unlimited
4
What is a loosey?
A dirty room.
A single cigarette sold at a convenience store.
A promiscuous person.
When you turn a screw to the left.
5
ABC, Inc. is incorporated in Nevada and is doing business in California. In California it is:
an alien corporation
a foreign corporation
a national corporation
a domestic corporation
6
The LLC is liable for torts committed by any managing member while engaged in LLC business thru
respondeat superior
caveat emptor
estoppel
none of the above
7
A corporation is formed for a purpose other than making a profit. This is called a
a nonprofit corporation
a foreign corporation
an alien corporation
not a corporation
8
Limited partners can avoid liability (beyond their investment in the partnership) if they
Openly manage the partnership
Silently manage the partnership
Avoid all phone calls.
Avoid all management of the partnership
9
An LLC, unless indicated otherwise, will be taxed as a
none of the above
a partnership
corporation
a syndicate
10
Profits and losses from a partnership (or LLC) will be divided as follows
In proportion to each partner's participation in management
In proportion to the profit generated by each partner.
Equally, unless expressly agreed otherwise
In proportion to capital contributions by each partner
11
ABC form a partnership. C leaves the partnership. Is C still have liability risk?
Yes -- You can never leave a partnership
Only up to C's investment in the partnership
No -- C has left the partnership
Yes -- if it occurred while C was a partner
12
The least likely item to be included in the articles of incorporation filed with the state:
the name of the corporation
name of each of the incorporators
the name of the corporation's registered agent.
the name of each of the corporation's shareholders
13
A corporation is owned by its shareholders. The management of the corporation is done by
the shareholders
the officers
the owners
the board of directors
14
Corporations must hold a shareholder's meeting at a minimum of
once a month
once every two years
only when it is called by the board of directors
once a year
15
Which form of business organization provides the LEAST PROTECTION from personal liability?
sole proprietorship
LLC
general partnership
corporation
