Question 402 pts

Zena, age17, lives on her own and pays all her own expenses, including groceries, rent and electric bills. If she makes a contract to buy a surround sound system for her television, she may not, in most jurisdictions, assert her minority status and set aside the contract.

Group of answer choices

True

False

Flag question: Question 41Question 412 pts

In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

Group of answer choices

True

False

Flag question: Question 42Question 422 pts

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Group of answer choices

True

False

Flag question: Question 43Question 432 pts

A general partnership is formed without any formality and no documents need be filed with the state.

Group of answer choices

True

False

Flag question: Question 44Question 442 pts

Which of the following is NOT true about a limited liability company?

Group of answer choices

It is a noncorporate business organization.

In most states, an LLC must have at least two members.

It may elect not to be a separate taxable entity.

An ownership interest may be considered a security.

Flag question: Question 45Question 452 pts

Which of the following is NOT an advantage of a partnership?

Group of answer choices

Partners' income taxes may be less than the income taxes would be on a corporation.

Each partner has limited liability.

It is possible to bring together more managerial skills than in a sole proprietorship.

It is possible to bring together more capital than in a sole proprietorship.

Flag question: Question 46Question 462 pts

Sole proprietors have limited liability for the sole proprietorship's debts.

Group of answer choices

True

False

Flag question: Question 47Question 472 pts

Under Subchapter S of the Internal Revenue Code, a corporation's income is taxed only at the shareholder level.

Group of answer choices

True

False

Flag question: Question 48Question 482 pts

Which of the following would not usually be found in the articles of incorporation of a corporation?

Group of answer choices

The number of directors necessary for a quorum.

The name of the corporation.

The name and address of each incorporator.

The number of authorized shares.

Flag question: Question 49Question 492 pts

A corporation is a creature of the state and may be formed only by substantial compliance with a state incorporation statute.

Group of answer choices

True

False

Flag question: Question 50Question 502 pts

Bill Bonney, the sole stockholder of Kidd Corporation, wrongfully used the corporation to avoid a personal liability. A court order that disregards the corporate entity and holds Bonney personally liable is called:

Group of answer choices

limited liability.

ultra vires.

diversity of interest.

piercing the corporate veil.