36. Which of the following best describes forcible entry and detainer action?

1. joint-stock company

2. limited liability company

3. partnership

4. joint venture

37. Which of the following is true of limited liability companies?

1. An LLC can be sued by third-parties as a separate entity.

2. An LLC cannot enter into contracts under its own name.

3. An LLC is a legal entity indistinct from its members.

4. An LLC cannot be a manager-managed business entity.

38. If a partner acts as an agent for the partnership, the resulting contract:

1. Would not be binding on the other partners.

2. Would not be enforceable by law.

3. Cannot be avoided by the other partners.

4. Can be canceled by the other partners.

40. In the absence of a statute to the contrary, a written partnership agreement need not be in a particular form.

1. True

2. False

44. A not-for-profit corporation usually issues stock.

1. True

2. False

45. The articles of incorporation constitutes a contract between the corporation and the state.

1. True

2. False

46. Certificates called shares of stock represent ownership in a stock corporation.

1. True

2. False

49. Which of the following best describes a prospectus?

1. It is a document relating to purchase and subsequent resale of company assets and intellectual property.

2. It is a document containing specified information about a stock offering and the corporation.

3. It is a document pertaining to the conduct regulations of the company.

4. It is a document containing information relating to the bylaws of the company.

50. Which of the following is true of dividends paid to shareholders?

1. Dividends can be paid in the form of property manufactured by another organization.

2. Cash dividends can be declared and then rescinded by the directors.

3. Dividends can be paid with stock a corporation owns in another company.

4. Stock dividends cannot be rescinded once declared.

53. The dissolution of a corporation:

1. Can never be voluntary on the part of stockholders.

2. May be sought by the state for failure to pay specified taxes for a given number of years

3. Allows it to make contracts to carry on business for six months.

4. May require the stockholders to pay debts the corporation's assets cannot cover.

54. Which of the following best describes whistleblowers?

1. They are people who take part in insider trading activities.

2. They are a group of people engaged in stock taxation.

3. They are people who expose wrongdoing in an organization.

4. They are people who subscribe for fresh capital stock.

55. Which of the following is true of a quorum?

1. It is the maximum number of debentures that must be represented in order that business may be lawfully transacted.

2. Statutes, bylaws, or the articles of incorporation ordinarily require a majority of outstanding stock constitutes a quorum.

3. A stockholder's proxy cannot be counted in reaching a quorum in a convened meeting.

4. At common law, a quorum consisted of the number of proxies at a properly convened meeting.

56. A husband and wife cannot file a bankruptcy petition jointly.

1. True

2. False

57. Which of the following is prohibited 90 days prior to filing a bankruptcy petition?

1. A debtor inheriting ancestral property

2. A debtor receiving valuable property from relatives and friends

3. A debtor selling his assets to liquidate them

4. A debtor clearing his debts to one creditor while ignoring others

58. Which claims have the lowest priority in payment?

1. tax claims

2. administrative claims

3. unsecured claims

4. guaranty claims

60. Personal property attached to land or a building that becomes a part of the land is known as a(n) _____.

1. fixture

2. installment

3. tenant

4. attachment

61. Which of the following is considered personal property?

1. non-navigable river

2. soybeans growing in a field

3. apple trees

4. mineral rights

63. _____ consists of land, including the actual soil, and all permanent attachments to the land, such as fences, walls, and other additions.

1. Fictitious property

2. Movable property

3. Intangible property

4. Real property

64. A deed that transfers whatever interest a grantor has in a property, but makes no claims as to what that interest may be, is known as a _____.

1. conditional deed

2. quitclaim deed

3. general warranty deed

4. warranty deed

65. An example of an affirmative covenant is:

1. to build no higher than a three-story building

2. to use the property only as a wilderness reserve

3. to contribute to the maintenance of a shared driveway

4. to build no closer than twenty feet from the edge of the lot

66. Which of the following is a provision in a deed?

1. The spouse of the grantee must sign the deed along with the grantee as a witness.

2. The grantee's marital status must be mentioned in the deed.

3. The grantor's personal income must be mentioned in the deed.

4. The statement of the consideration paid by the grantee must be mentioned in the deed.

67. A _____ deed warrants that a grantor has good title to a real property and further warrants that the grantor will defend the grantee against all claims by third parties. 1. specific warranty

2. quitclaim warranty

3. conditional warranty

4. general warranty

68. A mortgagor's payment of the debt does not divest the lien of the mortgagee until a release of mortgage is filed in the real property records of the county.

1. True

2. False

70. Which of the following best describes a lien?

1. It is an encumbrance or claim against property.

2. It is the interest paid on a mortgage.

3. It is a consideration given to the mortgager.

4. It is the title deed of the property mortgaged.

71. When a property is subject to a mortgage, who is responsible for paying the taxes?

1. the mortgage abates tax liability

2. the bank

3. the mortgagee

4. the mortgagor

72. A lease that lasts for less than one year: 1. must be in writing.

2. is not permissible by law.

3. does not require a written contract.

4. provides no legal possession of property.

73. The person giving possession of a leased property is known as a _____. 1. lessee

2. testatrix

3. lessor

4. tenant

75. Which of the following best describes forcible entry and detainer action?

1. It is the legal action taken by a tenant in case of nondisclosure by the landlord.

2. It is the summary action brought by a landlord on previous tenants.

3. It is the legal action taken by a tenant for wrongful eviction.

4. It is the summary action brought by a landlord to regain possession.