Ch.5 Sec.4 Quiz

What type of business formation is a temporary business involving a single transaction or a predetermined number of transactions?

joint venture.

What term applies to a relationship between 2 or more parties who act or operate in a manner that misleads someone into believing that a partnership exists?

ostensible partnership.

What is the corporate veil?

protection of a corporation's board of directors from individual liability for their own actions in connection with the business.

Two actively licensed brokers form a real estate partnership for the purpose of brokering real estate for others. What must they do to form a real estate brokerage partnership?

register the real estate brokerage partnership with the Department.

Which type of business formation is formed by an individual who is personally liable for his or her actions and is liable for the acts of any employee?

sole proprietorship.

All of the following are characteristics of a corporation for profit, except?

the company consistently earns a profit.

All of the following statements about a limited liability company (LLC) are accurate, except?

the words "company," "corporation," or "incorporated" must appear in the company name.

Which of the following statements about a general partnership is accurate?

in a general partnership, the partners are jointly and severally responsible for the debts and liabilities of the business.

All of the following statements about a real estate brokerage limited partnership are accurate except?

all partners, whether general or limited, must hold an active broker's license.

Which type of business formation may register with the Department as a real estate brokerage?

corporation for profit.

What term is used for a corporation created under Florida law?

domestic corporation.

What is the classification for a corporation that is organized under the laws of a state other than Florida?

foreign corporation.