33.) Fred, George, and Herb are general partners in a business. George was traveling to a conference as a representative of the firm and was involved in a traffic accident for which he was at fault. Under RUPA, who is liable for the damages?

A. George alone.

B George alone, but he is then entitled to indemnification from Fred and Herb.

C. George alone, but he is then entitled to indemnification from the partnership.

D. George and the partnership, then Fred and Herb will be liable if the assets of the partnership are depleted.

E. The partnership alone, since George was engaged in business for the partnership.

34.) Daniel, Elizabeth, and Fred are partners. Daniel has the express authority to purchase inventory for the business. Fred sees an excellent sale on inventory items, and purchases the items for the partnership. Elizabeth and Daniel are mad that Fred made this purchase because he depleted the funds in the partnership's bank account. Under these circumstances

A. the partnership is not liable for the items Fred purchased due to Fred's lack of authority.

B. the partnership is not liable for the items Fred purchased unless Daniel approves of the purchase.

C. the partnership is liable for the items Fred purchased.

37.) The Crooked Corporation issued illegal dividends to two shareholders, Joe and Danny. At the time the dividend was paid, Crooked was solvent. Crooked was even solvent after the dividend was paid. Joe knew that the dividend was illegal, but Danny just thought it was a stroke of good luck. Now creditors are suing these two shareholders for the full amount of the dividend. In this situation

A. neither Joe nor Danny has to pay anything to the creditors.

B. Joe must pay the creditors, but Danny may keep the money.

C. both Joe and Danny must pay the par value of the stock at the time they bought it, but no more than that amount.

39.) The voting rights exercised by shareholders at meetings allow them _______ control of the corporation and the board of directors.

40.) Which type of taxation does a Limited Liability Company have?