Exam Lesson Name: Business Organizations Exam number 660012RR Retake (a 1) Arian is a sole proprietor and owes a number of business creditors. The business creditors may Sue to A) Take no assets, but only the profits of the business. bemol need Joy I'msen 3) Take Arians's business assets only. ebrill nord Jud endinom xiandi fi solquboo C) Take Arian's personal assets only. Seesof erli no D) Take both Arian's business and personal assets. 2) Alan and Delen enter into a partnership agreement with a $10,000 capital contribution. Six months later, Delen loans Alan $1,000. The loan is a xe|A bris ginsH rhod ( A) Partnership capital contribution. lliw te vonsnel s eswil eonia ,ano off (d B) Loan to the partnership rather than Alan. C) Personal loan to Alan only. hegleisnog neewied sanersilib viaming onT (8 D) Loan to both the partnership and to Alan. eril 10 3) Modest Co., a Delaware corporation, wants to do business in California. Since Nodest is a foreign corporation, it A) Doesn't need to take any particular action. evenhisg to ledmull (Q B) Must incorporate in california. C) Must obtain certificates of authority from California and delaware.been asengistrie lliM (e D) Must obtain a certificate of authority from california. 1019 el ni lestaini lenoilost evni ni mule s bequens 4) When shareholders join together in a temporary arrangement, it's called a sislee isen (A A) Voting trust. efromUwant Idea (8/ B) Shareholder proposal. C) Pooling agreement eboog (Q D) Cumulative voting agreement. on of been alert Inemujoob Iautos end! of ansign (INA18) A (Or 5) The four fundamental legal principles that are designed to protect the corporate structure are (1) corporate status as an entity, (2) corporate constitutional rights, (3) corporate citizenship, and (4) VX019 take sirenssibe enlov evilslumbo (8 A) Mutual recession. Jnomeerps level gritoV (O B) Limited liability. Jnemoamps pniloo9 (a C) Anticipatory repudiation. D) Unconscionable contract.logo SYX nollstogies XYX al jabloricarla a al lee (Fr orle a eA ,ato b eri of sub elluswel beli evsd alsubivibni worm 6) When forming a limited partnership, it's critical to know that Toldall vilsnomisq blond ed toh (A91 mex3 A) Limited partners are participating investors. B) A certificate of limited partnership must be filed with the secretary of state's office. General partners have limited liability for the firm's debts. General partners can only take a limited part in the management of the firm. 7) Henry, a promoter, signs a five-year lease agreement for office space for Ajax Corp., which hasn't yet been formed. After formation, Ajax moves into the office space, pays rent, and occupies it for six months, but then finds a cheaper location and moves out. Which party is liable on the lease? A) Henry oo fellces ovo,te's ww Inemesign qindeanheg s ofni eine deled bos nelA (S B) Ajax B er nsol erT 000,12 nelA ancol noled aeislerdinom C) Both Henry and Ajax D) No one, since it was a tenancy at will robfudhinoo istiqso girlmenhe9 (A 8) The primary difference between general partnerships and limited partnerships is the limiting of the A) Number of agents. bills ni asenlaud ob of etnew nollmogioo enewsled s .09 taeboM (S B) Partners' profit. Hi noltelogico ripletol C) Partners' liability D) Number of partners. B) When 9) Mill enterprises needs to raise a large amount of money. To raise the money, it sells its fractional interest in its Florida orange groves to Sunshine Co. in New York. Sunshine Co. would ensured a return in investment from the land purchased. Mill enterprises has sold (tepol niol asblorie ade nerfW (A A) Real estate B) Debt instruments. Jaunt pritov (A C) Securities. iseogong Teblodeterle (8 D) goods Themeeips galloo9 (O 10) A (BLANK) refers to the actual document that's used to request the right to vote the other shareholders' votes. erll lostcig of beriplesbians jani esigioning legel lelemsbrul wol andT (@ Do (8),airion lenolfolifenoo sistagoo (S) viline na as eulate simogroo (r) A) Proxy solicitation (A) B) Cumulative voting agreement C) Voting trust agreement. D) Pooling agreement. vlilidell betimi! (8 buger alainA (0 11) Sal is a shareholder in XYZ corporation. XYZ Corporation made defective products, and many individuals have filed lawsuits due to the defects. As a shareholder, Sal may southo all , qinlaterteq belimil s primal nerW (8 A) Not be held personally liable for the defects.B) Be held personally liable only if the plaintiffs name Sal as a defendant. g lenog s al (71 C) Be held personally liable only if the corporation was aware of defects. D) Be held personally liable for the defects. 12) Robert owns shares in products inc. and suspects that Zach, one of the directors of the company, has been stealing corporate assets. Robert complains to the corporation, gig to bur but no action is taken. Robert should file a snozieq o A) Direct suit against Products Inc. B) Derivative suit against Products Inc. on his own behalf. C) Direct suit against Zach. jesom evilbelong (A D) Derivative suit against Zach on behalf on Products Inc.torq asimov (a endlessm evilbeton (3 13) Under the Revised Uniform Partnership Act, vitoslong viainulov (a A) Partners are co-owners of partnership property. bellmil s nsewled sonnenlib arIT for B) The partnership is an aggregate rather than entity in its own right. C) Partnership property is owned by the partnership. D) Partners don't have transferable economic interests. lenee over nes 9.J 191 RA (A 14) Kay, an 80 percent shareholder of Big Corp., dies and leaves her stock to her nephew, Carl. Big Corp. will be A) Unaffected. pens station novel anpipelib art to scanIT .alotomb xle and. 60 xsiA (0S B) Dissolved. Mibig aulque erdi studileib brie esia inenus all is xsiA quet of inew etofubib C) Reorganized. vd Asalbusb elill ovloser Hiw D) Dissolved and then reconstituted. x6/A to nollulosalb asinulovni ne enhebio 15) If Titanic Co, Makes a tender offer to acquire more than (BLANK) percent of the shares of a target, Titanic Co. must file a statement with the SEC. embergs ne exam of enoloeb art grihebio (@ A) 15 B) 10 C) 5 D) 20 16) Todd wants to start a business, but he wants to make sure that he has absolute control. Which business form would you recommend? A) Sole proprietorship B) Limited partnership C) Limited Liability company D) General partnership17) In a general partnership, management decisions are made by dell vilsnoreq blerl ed (a A) Majority vote, with partners votes weighted in proportion to the interest owned. ( B) Unanimous vote, with each partner having an equal vote. edsil vilsnogreg blerl ed (Q C) Majority vote, with each partner having an equal vote. D) Two-thirds votes of the partners. i etouborg ni seisle antwo hadoff (st 18) Koto, a successful accountant, has been invited to join the board of directors of Big Corp. Koto is concerned that she will face personal liability for her decisions while on the board of Big. The corporation can limit Koto's liability by including il eloubon9 Jenisps five losdid (A bubo19 tenisps live evilevied (8 A) Protective measures in the members' agreement. losS deninos live loenid (O B) Voluntary protective measures in its bylaws. . ross fenisps five evitsvhed (a C) Protective measures in its corporate charter. D) Voluntary protective measures in its articles of organization notinU bealvel erif lebnu (Er 19) The difference between a limited partnership and a registered limited liability partnership (RLLP) is that wine nerdi ter el ginaionhisq enT (8 goiq girlaterhe (0 A) An RLLP can have secret partners, while a limited partnership can't. rob events (C B) A limited partnership can have secret partners, while an RLLP can't. C) All partners have limited liability in an RLLP, but not in a limited partnership. ne EN (At D) All partners have limited liability partnership, but not in an RLLP. ad lliw .q100 pid 20) Ajax Co. has six directors. Three of the directors favor corporate expansion, and three directors want to keep Ajax at its current size and distribute the surplus profit. A court most likely will resolve this deadlock by sinsgoes ( befulllenocer neril bris bevloeaid (0 A) Ordering an involuntary dissolution of Ajax. B) Appointing an arbitrator. eniupon of letto rebrist s sexisM ,09 pinshit II (er C) Appointing a seventh director to break the tie. (w inemetsis s elit teum .of smallT Jegial D) Ordering the directors to make an agreement or be in contempt of court. ar (A or a as (a cart ed Jordi eme exem of alnew en jud econloud s hale of elnew boot Sbrismmooen voy bluow miot sesnieud doin girlenolengoig eto8 (A viegmos. Villidald belimb)