Question 78 (1 point)

Which of the following statements is true of the Racketeer Influenced and Corrupt Organizations Act (RICO)?

Question 78 options:

	It prohibits using income derived from racketeering activity to acquire an interest in an enterprise.
	Companies involved in bribery do not face civil liability.
	Participating in an enterprise through a pattern of racketeering activity is permissible.
	To be charged for racketeering, the prosecution must prove, at a minimum, the commission of a single offense within a 10-year period.

Question 79 (1 point)

Under the Racketeer Influenced and Corrupt Organizations Act (RICO), _____ is considered a racketeering activity.

Question 79 options:

	arson
	homicide
	extortion
	larceny

Question 80 (1 point)

The _____ form of business organization most limits personal liability for its shareholders.

Question 80 options:

	sole proprietorship
	cooperative society
	corporation
	general partnership

Question 81 (1 point)

When a general business partnership fails, the partners:

Question 81 options:

	lose only their investment.
	may be required to pay partnership debts from personal assets.
	can waive their limited liability.
	are liable for losses equivalent to their own individual contributions.

Question 82 (1 point)

Which of the following run the risk of unlimited personal liability?

Question 82 options:

	Partners in a limited partnership
	Partners in a general partnership
	Shareholders in S Corporations
	Corporate shareholders

Question 83 (1 point)

William and Nigel decide to start a partnership business. They ask their friend Sophia to become a limited partner in order to help them with additional funds to get the business started. Which of the following statements about Sophia would be correct if she becomes and remains a limited partner in this scenario?

Question 83 options:

	She may be involved in management of the business but to a rather limited degree.
	She cannot be entitled to any share in the profits of the business.
	She may lose her investment if the business fails, but she will have no personal liability for partnership debts.
	She may be considered an employee and therefore will be entitled to wages for the services she renders to the partnership.

Question 84 (1 point)

Which of the following is a taxable entity?

Question 84 options:

	Corporation
	Sole proprietorship
	General partnership
	S Corporation

Question 85 (1 point)

A freeze-out:

Question 85 options:

	occurs when a majority shareholder is "frozen out" by the management regarding such issues as a reduction or elimination of dividends.
	can be easily reversed in court.
	results in the minority shareholder having little influence in important corporate issues such as loss of employment.
	occurs mostly in S corporations.

Question 86 (1 point)

When a general partner sells his or her partnership interests, the purchaser:

Question 86 options:

	is granted automatic partnership by operation of law.
	is granted partnership only after he divests all interests in other general partnerships.
	does not become a partner until he or she is nominated by the director and unanimously accepted by other members.
	does not become a partner until he or she is unanimously accepted by the other partners.

Question 87 (1 point)

If a business involves high risk, a single factor such as _____ will be so important as to outweigh other factors.

Question 87 options:

	limited liability
	taxation
	formalities
	financing

Question 88 (1 point)

Which of the following is true of a limited liability company (LLC)?

Question 88 options:

	It cannot sue or be sued in its own name.
	Investors of an LLC are able to share in management.
	Members are personally liable for the wrongful acts of other members.
	It cannot have more than 100 members.