QUESTION 1 Lucy Sparrow started a campaign to raise captial for her felting business. She produced a video highlighting her products and ran the video through the Kickstarter platform. Lucy Sparrow will pay a percentage of her investment proceeds to Kickstarter. If Lucy's business venture is successful, she will pay her investors a share of her profits. Lucy used to raise capital. O a. Crowdfunding O b. Capital venturism O c. Business loans O d. Go Fund Me QUESTION 2 Ron operates a pizza shop in Laramie, Wyoming. Ron hires Susan to wait tables and prepare orders at an hourly wage of $15.00, plus tips. Ron and Susan are O a. partners in a partnership. O b. not partners, because Susan does not have an ownership interest or management rights in the pizza place. O c. not partners, because the pay includes an hourly wage. O d. not partners, because the pay includes tips.QUESTION 3 Flagstaff Candles is operated as a partnership, with ve partners. Craig has a onethird interest in the rm. Each of the other partners has a one-sixth interest. Nancy is the senior partner. With respect to management decisions 0 a. Craig can make the decisions alone. 0 b. unanimous consent is required. 0 c. a majority of the partners must agree. 0 d. Nancy makes the decisions. QUESTION 4 Bill and Hillary do business as Rose Garden Estates. In acting on the rm's behalf, Hillary takes advantage of an opportunity to make a secret profit. To her firm, Hillary is O a. liable for a breach of the duty of care. 0 b. not liable for the breach of any duty. 0 c. liable for a breach of contract. 0 d. liable for a breach of the duty of loyalty. QUESTION 5 Nancy is a partner in Precision Plumbing. When the partners decide to dissolve the rm, Nancy collects and distributes the assets. This results in O a. nothing with respect to the rm's existence. 0 b. the termination of the firm's legal existence. 0 c. the temporary suspension of the firm's business. 0 d. the continuation of the rm's business. QUESTION 6 Ashok and Galen do business as GA Pool Manufacturers. In acting on the rm's behalf, Ashok makes an honest mistake in underestimating the cost of a project. In this situation, to her rm, Ashok is O a. not liable for a breach of any duty. 0 b. liable for a breach of the duty of accounting. 0 c. liable for a breach of the duty of care. 0 d. liable for a breach of the duty of loyalty. QUESTION 7 Article 2 of the UCC governs sales contracts. The UCC states that a contract will not automatically fail for indeniteness if one or more terms is left open. However, if the of goods involved usually must be expressly stated in the contract. 0 a. quantity 0 b. price 0 c. quality 0 d. delivery method QUESTION 8 Dora and Manny wish to combine their professional accountancy practices into a single rm that combines the pass-through tax status and other advantages ofa partnership with limits to the personal liability of the partners. The appropriate business organization for this enterprise is most likely O a. a limited liability limited partnership. 0 b. a family limited liability partnership. 0 c. a limited liability company. 0 d. a limited liability partnership. QUESTION 9 Evan, Collin, Cheryl, and Misty form a limited partnership. In most states, without an agreement othenivise, profits will be shared 0 a. on the basis of percentages of capital contributions. 0 b. equally among the partners. 0 c. on a FIFOfirst in, first outbasis. Q d. in the same ratio as losses. QUESTION 10 Mitchelli LP is a limited partnership that invests in real estate. Its limited partners include more than 150 sophisticated investors and investment professionals, including Ruby. Ruby loses his limited liability if she O a. does not participate in the rm's management. 0 b. participates extensively in the rm's management. 0 c. votes to sell or dissolve the rm. 0 d. invests in a project that the firm has declined. QUESTION 11 Taco John's is a Mexican restaurant headquartered in Cheyenne, Wyoming. Heather owns a small coroporation. Heather signs a contract with Taco John's so that she will use its logo and supplier and run a restaurant in exchange for paying them an annual fee and part of her profits. This is O a. a franchise. O b. a sole proprietorship. O c. a partnership. O d. a joint venture. QUESTION 12 Marty contracts to buy a franchise from RuthBG Inc. In this contract, as in most franchise contracts, the determination of the territory to be served is made by O a. Marty. O b. other RuthBG franchisees within the same state. O c. RuthBG. O d. RuthBG customers.QUESTION 13 Donuts Whole Inc. offers an entrepreneur the opportunity to operate a franchise bakery under the Donuts Whole trade name. Before a franchise contract is signed, Donuts Whole must explain 0 a. the contract's termination provisions. 0 b. the laws governing franchising. O c. the nature and operation of a franchise. Q d. how a lawyer is involved in the franchise process. QUESTION 14 Which ofthe following is NOT a reason that a court might find for piercing the corporate veil O a. The corporation has less than 100 shareholders O b. The corporation has not operated as a seperate entity, the alter ego theory 0 c. The corporation is set up to never make a prot 0 d. The corporation is undercapitalized at the time it is formed QUESTION 15 Which of the following is not a form of business structure: 0 a. Limited liability partnership 0 b. Limited Liability Company (LLC) 0 c. Franchise 0 d. S Corporation QUESTION 16 Guardian Day Care hires Louisa to work as a front desk clerk for a certain salary for one year. Louisa accepts the offer. This is a valid contract because it includes 0 a. a duration and a termination. O b. an offer and an acceptance. 0 c. specific quality standards. 0 d. a price and a subject. QUESTION 17 Zebulon offers to sell his video game player for $150 to Esther. Esther promises to pay Zebulon the price. Later, they exchange the player for the funds. Under either the UCC or common law, a contract was created when 0 3. Esther paid for the player. 0 b. Zebulon offered to sell the player. 0 c. Esther promised to pay for the player. 0 d. Zebulon delivered the player. QUESTION 18 Khe says, "I plan to sell my living room furniture set." This is not an offer because 0 a. a statement of future intent to do something in the future is not an offer. 0 b. an expression of opinion does not indicate an intent to enter into a deal. 0 c. the offeror has only committed to negotiate the terms in good faith. 0 d. the statement is not addressed to a specic offeree. QUESTION 19 Yu-Jun mails an offer to build a fence for Melania for $500. Under the mailbox rule, Melania's acceptance by e-mail will be considered effective when O a. sent. O b. received. O c. followed up by a confirmation letter sent by regular mail. O d. composed on a Reliable computer. QUESTION 20 While Julia is shopping to purchase ingredients to make some fine French cuisine, she tries to start her moped but it won't start. Frustrated, she says that she will sell the moped to anyone for $10. Gerard hears her statement and says, "I accept." There is no contract because the offer lacks O a. communication. O b. practicality. O c. serious intent. O d. definite terms