QUESTION 1

1. At the first organzational meeting of Hairsense, Inc., which is likely to occur
2. a.bylaws will be adopted
3. b.shareholders will be issued shares of stock
4. c.all of the choices
5. d.directors will be elected

QUESTION 2

1. Scuba Adventures Inc. and Tours of the Sea Company decide to consolidate. This corporate combination doesnotrequire the approval of
2. a.Tours shareholders.
3. b.Scuba and Toursdirectors.
4. c.Scuba shareholders.
5. d.Scuba and Tours officers.

QUESTION 3

1. In most states, a limited liability company can have only a limited number of members.
2. True

False

QUESTION 4

1. Floyd and other consumers form Grocers Mart Cooperative. This form of business organization makes it possible for these consumers to
2. a.obtain an exemption from state laws governing corporations.
3. b.pool their resources to gain an advantage in the marketplace.
4. c.pay no taxes on their business income.
5. d.avoid personal liability for the acts of the cooperative.

QUESTION 5

1. Sierra is a holder of preferred stock in Rio Grande Irrigation, Inc. Sierra has priority over holders of Rio common stock as to
2. a.upward changes in the market price of the shares.
3. b.payments of dividends.
4. c.nothing.
5. d.voting for the Board of Directors.