31.Shareholders have both the right and obligation to manage the day to day operations of an enterprise.

True

False

32.The court in Marsh v. Gentry found that transactions between two partners require a higher degree of good faith than transactions between a partnership and a third party.

True

False

33.Generally, franchisees are afforded great latitude to experiment with the types of goods or services sold by their franchise unit, provided that they share all profits with their franchisor.

True

False

34.The Uniform Partnership Act (UPA) rules governing the relationship among partners are default rules that may be modified by partners if they expressly agree.

True

False

35. A partnership must make a formal filing with the Secretary of State containing basic information about the entity.

True

False

36. In Unocal Corp. v Mesa Petroleum Co. the Delaware Supreme Court explicitly prohibited the Unocal board from considering interests of other stakeholders over those of some Unocal shareholders.

True

False

37. Although not required, operating agreements are advisable for limited liability companies.

True

False

38. A corporation that registers for S corp status with the IRS is not necessarily treated as a close corporation under state law unless it complies with the state statute's particular requirements.

True

False

39.Every partner in a general partnership is an agent of the partnership.

True

False

40.When compared to corporations, the relative novelty of limited liability companies means that the body of law applicable to LLCs is less settled and developed than the body of law applicable to corporations.

True

False