BLAW CHAP 12

___________ are those with stock traded on a stock exchange and, therefore, are likely to have many shareholders. (A) Publicly held corporations (B) Privately held corporations (C) Close corporations (D) Real corporations (E) Traded corporations

(A) Publicly held corporations

1. During the course of a partnership's winding-up process, the partners owe each other: (A) a duty to disclose all finances of the partnership (B) a duty to compete fully (C) a duty to refrain from termination (D) a duty of discounting (E) a duty to mitigate

(A) a duty to disclose all finances of the partnership

1. A limited partnership is usually dissolved by the bankruptcy of: (A) a general partner, but not a limited partner (B) either a general partner or a limited partner (C) a limited partner, but not a general partner (D) the secretary of state (E) neither a general partner nor a limited partner

(A) a general partner, but not a limited partner

1. In most circumstances, a partnership is now treated as: (A) a legal entity (B) a special entity with no ability to sue or be sued (C) a proxy (D) a sole proprietorship (E) none of the other choices are correct

(A) a legal entity

1. Which of the following apply to a sole proprietorship: (A) a person is in business for himself (B) no government license usually required (C) no tax return required in the name of the business (D) a person is in business for himself and no government license usually required (E) none of the other choices

(A) a person is in business for himself

1. Electing a board of directors, enacting the corporation's bylaws, and issuing the corporation's stock are all things that occur: (A) after the state has issued the corporation's certificate of incorporation (B) before the state has issued the corporation's certificate of incorporation (C) before the state has issued the corporation's articles of incorporation (D) before the application for a certificate of incorporation (E) these things can occur at anytime

(A) after the state has issued the corporation's certificate of incorporation

1. A general partnership is: (A) an association of two or more persons to carry on a business as co-owners for a profit (B) an association of two or more companies that help each other with business, but do not share profits (C) an understanding between a supplier and a distributor (D) a merger of two corporations (E) none of the other choices are correct

(A) an association of two or more persons to carry on a business as co-owners for a profit

A________ is one whose shares are held by one shareholder or a small group of shareholders. (A) close corporation (B) small corporation (C) limited corporation (D) shared corporation (E) nonprofit corporation

(A) close corporation

A ______ is an artificial person, or legal entity, created under state law. (A) corporation (B) limited partnership (C) legal partnership (D) sole proprietorship (E) business

(A) corporation

1. Coca-Cola, Microsoft and General Motors are all examples of: (A) corporations (B) limited partnerships (C) legal partnerships (D) sole proprietorships (E) none of the other choices are correct

(A) corporations

A reason the corporate status is often chosen is: (A) corporations have the status of a legal person (B) the Civil Rights Act of 1964 does not apply to corporations (C) shareholders have the right to instruct management (D) directors are immune from liability suits (E) none of the other choices are true

(A) corporations have the status of a legal person

1. A complete termination comes about only after the partnership has been_______ and its affairs have been wound up. (A) dissolved (B) disillusioned (C) standardized (D) reorganized (E) finalized

(A) dissolved

1. Limited partners are investors who: (A) may not participate in management of the business (B) are liable for all debts of the limited partnership (C) may take an active role in the management of the business (D) all of the other specific choices (E) none of the other choices

(A) may not participate in management of the business

In a sole proprietorship, the capital usually: (A) must come from the owner's own resources or be borrowed (B) comes from the government (C) comes from investors (D) comes from the stock market (E) comes from taxes

(A) must come from the owner's own resources or be borrowed

1. The articles of incorporation usually include all of the following except: (A) name of the CEO (B) address of the corporation (C) purpose of the business (D) classes of stock to be issued (E) all of the other choices are included

(A) name of the CEO

1. A partnership can begin with either a(n) or a(n) . (A) oral agreement; implied agreement (B) oral agreement; false agreement (C) oral agreement; forced agreement (D) implied agreement; default agreement (E) implied agreement; loan agreement

(A) oral agreement; implied agreement

There are businesses in the United States. (A) over 30 million (B) under 20 million (C) over 50 million (D) less than 500,000 (E) too many

(A) over 30 million

The majority of businesses in the United States are: (A) sole proprietorships (B) non-taxable (C) corporations (D) non-profit (E) partnerships

(A) sole proprietorships

1. Today a corporation must be created according to: (A) state law (B) common law (C) the Uniform Incorporation Act (D) the U.P.A. (E) federal statutory provisions

(A) state law

1. Under traditional common law rules, if you wanted to sue a partnership you had to: (A) sue each partner individually (B) sue the partnership as a group (C) sue the state on behalf of the partnership (D) have the state sue the partnership (E) wait until the partnership was incorporated to sue

(A) sue each partner individually

The name and address of a corporation, the name and address of the corporation's registered agent, and the purpose of the business are all examples of things that are generally included in: (A) the articles of incorporation (B) the articles of sale (C) the articles of business (D) the articles of legitimacy (E) the articles of profit

(A) the articles of incorporation

In a sole proprietorship, the owner is: (A) the business (B) a corporation (C) a subsidiary (D) a partnership (E) an amalgamation

(A) the business

1. Which of the following is a right of a limited partner in a limited partnership: (A) the right to see the partnership books (B) the right to make hiring decisions (C) the right to take an active role in managing the business (D) both a and b are rights of a limited partner (E) none of the other specific choices are rights of a limited partner

(A) the right to see the partnership books

In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that: (A) there was no fraud, the directors followed the rules, so he had no suit (B) while there was no fraud, the directors did not follow the bylaws properly, so the changes made to the corporation would have to be reconsidered (C) the bylaws had been violated, so Samuels was due full fair market value of his shares (D) the directors violated their duty to the corporation so would be removed from control and Samuels would take control of the company (E) none of the other choices

(A) there was no fraud, the directors followed the rules, so he had no suit

1. The dissolution of a partnership occurs: (A) when an event takes place that precludes the partners from continuing in business (B) during the process of completing any unfinished business of the partnership (C) during the collection and distribution of the partnership's assets (D) when a certificate of limited partnership is executed (E) none of the other choices

(A) when an event takes place that precludes the partners from continuing in business

If a shareholder supplies needed material to the business then he: (A) will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor (B) will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the corporation as any other creditor (C) will be removed from the corporation (D) will be forced to sell his shares in the company (E) will become a creditor of the corporation, but will not enjoy the same rights of recovery against the corporation as any other creditor

(A) will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor

If a shareholder works for the business then he: (A) will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor (B) will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the corporation as any other creditor (C) will be removed from the corporation (D) will be forced to sell his shares in the company (E) will become a creditor of the corporation, but will not enjoy the same rights of recovery against the corporation as any other creditor

(A) will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor

1. The_______ provides "default rules" that determine the operation of partnerships when the partnership agreement is silent or where there is no formal agreement among the partners. (A) Revised Uniform Proprietorship Act (B) Revised Uniform Partnership Act (C) Revised Real Partnership Act (D) Revised Unified Partnership Act (E) Revised Universal Partnership Act

(B) Revised Uniform Partnership Act

1. Compared to the U.S., new businesses in Japan: (A) are created more frequently than they are in the U.S. (B) are created much less frequently than they are in the U.S. (C) are greatly encouraged by banking regulations (D) are greatly encouraged by Japanese tax rates (E) may operate with less money than U.S. businesses

(B) are created much less frequently than they are in the U.S.

Directors are under a _________ to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs. (A) duty of reasonability (B) duty of care (C) duty of management (D) duty of morality (E) duty of profit

(B) duty of care

A corporation is recognized under both federal and state law as a "person" and: (A) enjoys all of the same rights and privileges accorded to U.S. citizens in about half the states (B) enjoys some of the same rights and privileges accorded U.S. citizens (C) enjoys none of the same rights and privileges accorded to U.S. citizens (D) enjoys all of the same rights and privileges accorded to U.S. citizens (E) none of the other choices are correct

(B) enjoys some of the same rights and privileges accorded U.S. citizens

1. Under traditional common law rules, a partnership: (A) was always treated as a single legal entity (B) generally was not treated as a single legal entity (C) had the same legal personality as a corporation (D) was forbidden under the law (E) could only be formed with the consent of the state

(B) generally was not treated as a single legal entity

1. In a sole proprietorship, profits are taxed to the: (A) corporate owner of the proprietorship (B) individual owner of the proprietorship (C) general partners (D) state (E) none of the other choices

(B) individual owner of the proprietorship

1. A certification of incorporation from the government: (A) gives a business monopoly privileges (B) is necessary for a corporation to be recognized legally (C) must be obtained by all limited partnerships (D) is necessary or a corporation to be recognized legally and must be obtained by all limited partnerships (E) none of the other choices

(B) is necessary for a corporation to be recognized legally

Which of the following is not true about a partnership? (A) it must be owned by two or more people (B) it is always an independent legal entity (C) partners co-own the business (D) partners share control over the business operation (E) all of the other choices are true

(B) it is always an independent legal entity

1. A business organization in which some of the partners are not liable for partnership debts is called a: (A) no liability partnership (B) limited liability partnership (C) partial liability partnership (D) local liability partnership (E) unlimited liability partnership

(B) limited liability partnership

1. A business organization made up of two or more persons who have entered into an agreement to carry on a business venture for a profit, and not all persons have the right to participate in management decisions is a: (A) proprietorship (B) limited partnership (C) cooperative (D) general partnership (E) none of the other choices

(B) limited partnership

Shareholders of a corporation have: (A) no right to see the corporation's books and records (B) limited rights to see the corporation's books and records (C) no rights to see the corporation's books and records in some states, but not others (D) limited rights to see the corporation's books and records in some states, but not others (E) none of the other choices are correct

(B) limited rights to see the corporation's books and records

1. The articles of incorporation usually provide all of the following except: (A) name of the corporation (B) names of all shareholders (C) name of the registered agent (D) classes of stock being issued (E) all of the other choices must be provided

(B) names of all shareholders

1. Gary and Sue start a consulting firm. They are co-owners of it and have joint control over its operation and the right to share in its profits. Their organization is most likely a: (A) proprietorship (B) partnership (C) business trust (D) corporation (E) syndicate

(B) partnership

1. In the final dispersal of the assets of the limited partnership, creditors' rights: (A) do not precede partners' rights (B) precede partners' rights (C) are immaterial (D) precede some precede partners' rights, but not others (E) only precede general partners' rights

(B) precede partners' rights

The business judgment rule: (A) is applied when directors of a corporation act negligently (B) protects directors and managers of a corporation who have made honest mistakes in judgment (C) is used by courts to impose strict liability on directors and managers when violated (D) protects directors and managers of a corporation who have made honest mistakes in judgment and is used by courts to impose strict liability on directors and managers when violated (E) none of the other choices

(B) protects directors and managers of a corporation who have made honest mistakes in judgment

At a shareholder meeting, important corporate business is presented to the shareholders in the form of ___________ , which shareholders vote to approve or disapprove. (A) statements (B) resolutions (C) quorums (D) bylaws (E) contracts

(B) resolutions

The board of directors of a corporation are elected by: (A) top managers (B) shareholders (C) current board members (D) the president (E) all of the other choices have equal votes

(B) shareholders

1. A change in the relationship of the partners that shows an unwillingness or an inability to continue with business may bring about_______ of the partnership. (A) finalization (B) termination (C) composition (D) revitalization (E) retaliation

(B) termination

1. A written partnership agreement typically specifies the following except: (A) the ownership interests of the partners (B) that the partnership will be established under federal or state law (C) the name of the partnership business (D) the procedures for dissolution of the partnership (E) the method of accounting to be used

(B) that the partnership will be established under federal or state law

1. Corporations have existed for centuries, but the modern "liberal" general incorporation statutes were first passed in: (A) the late 1700s (B) the 1930s (C) the 1950s (D) the 1960s (E) none of the other choices

(B) the 1930s

1. Which of the following are not required to be in a certificate of limited partnership: (A) the type or character of the business (B) the business positions to be held by each partner (C) the proportion of profits to be earned by each partner (D) the business positions to be held by each partner and the proportion of profits to be earned by each partner (E) the business positions to be held by each partner and the proportion of profits to be earned by each partner and the proportion of profits to be earned by each partner

(B) the business positions to be held by each partner

1. A disadvantage of the sole proprietorship form is often: (A) business profits are taxed to the owner personally (B) the limited alternatives for raising financial capital (C) the owner has sole responsibility for control, liabilities, and management (D) the record keeping formalities of the business are within the owner's discretion (E) none of the other choices

(B) the limited alternatives for raising financial capital

1. A disadvantage of the sole proprietorship form is often: (A) business profits are taxed to the owner personally (B) the owner is personally liable for all the business debts (C) the owner has sole responsibility for control, liabilities, and management (D) the record keeping formalities of the business are within the owner's discretion (E) none of the other choices

(B) the owner is personally liable for all the business debts

1. Which of the following is a right of a limited partner in a limited partnership: (A) the right to make hiring decisions (B) the right to participate in the dissolution of the business (C) the right to take an active role in managing the business (D) both a and b are rights of a limited partner (E) none of the other specific choices are rights of a limited partner

(B) the right to participate in the dissolution of the business

1. In general, if a partnership agreement does not specify what happens in case of the death or departure of a partner, one looks to: (A) Federal Partnership Act (B) Robinson-Patman Act (C) Uniform Partnership Act (D) Partnership Termination Act (E) Partnership Operation Act

(C) Uniform Partnership Act

1. A sole proprietorship comes into existence when: (A) a person in business hires at least one employee (B) two or more persons join together to work at a business (C) a charter is received from the secretary of state (D) a person begins to do business for herself (E) when a federal tax identification number is issued for the business

(C) a charter is received from the secretary of state

1. Partners in a partnership owe each other: (A) direct interest responsibility (B) a duty to contribute direct assets (C) a fiduciary duty (D) a duty of ordinary care (E) none of the other choices

(C) a fiduciary duty

1. Which of the following statement(s) is (are) true? (A) a partnership may consist entirely of limited partners (B) a limited partner may exercise control over the business in proportion to his interest in it (C) a limited partnership must have at least one general partner (D) all of the other specific choices are true (E) none of the other choices

(C) a limited partnership must have at least one general partner

At a shareholder meeting, there must be: (A) a manager (B) at least three company employees (C) a quorum (D) at least 1/3 of the total shares present (E) none of the other choices are correct

(C) a quorum

1. General partners in a limited partnership: (A) have no liability (B) have limited liability (C) are personally liable to the partnership's creditors (D) are personally liable to the secretary of state (E) are personally liable to the partnership's creditors only if they choose to be

(C) are personally liable to the partnership's creditors

1. In most states a limited partnership does not have to file what information with the appropriate state official? (A) name of the business (B) names and addresses of all partners (C) bankruptcy history of each partner (D) the share of profits to be paid to each partner (E) all of the other choices must be filed

(C) bankruptcy history of each partner

1. The duty of partners to a partnership is: (A) to elect one partner as managing partner (B) to place the assets in a blind trust (C) based on extraordinary trust and loyalty to the partnership (D) to elect one partner as managing partner and is based on extraordinary trust and loyalty to the partnership (E) to elect one partner as managing partner and to place the assets in a blind trust and is based on extraordinary trust and loyalty to the partnership

(C) based on extraordinary trust and loyalty to the partnership

1. Unless the limited partnership agreement holds otherwise, when a limited partnership is dissolved the limited partners receive their share of the profits and their capital contributions: (A) after the general partners get theirs (B) after the general partners, but before the creditors (C) before general partners receive anything (D) before creditors receive anything (E) none of the other choices are correct

(C) before general partners receive anything

The governing committee of a corporation is the: (A) board of presidents (B) president (C) board of directors (D) board of shareholders (E) board of managers

(C) board of directors

1. Limited partners are similar to corporate shareholders in that: (A) both have unlimited liability (B) there is no liability for either (C) both are liable to the extent of their investment (D) there must be one general partner (E) none of the other choices

(C) both are liable to the extent of their investment

1. After reviewing a corporation's application, the state issues a: (A) certificate of business (B) certificate of taxes (C) certificate of incorporation (D) certificate of institution (E) certificate of corporation

(C) certificate of incorporation

1. Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except: (A) bankruptcy of a partner (B) withdrawal of a partner (C) change in financial condition of a partner (D) death of a partner (E) all of the other choices would require dissolution

(C) change in financial condition of a partner

1. A________ requires that each partner act in good faith for the benefit of the partnership. (A) partnership relationship (B) contractual relationship (C) fiduciary relationship (D) contractual promise

(C) fiduciary relationship

The shareholders of a corporation generally have the right(s) to: (A) instruct top management on corporate operations (B) hire managers of the corporation (C) give a third party the right to vote their shares by proxy (D) instruct top management on corporate operations and hire managers of the corporation (E) instruct top management on corporate operations and hire managers of the corporation and give a third party the right to vote their shares by proxy

(C) give a third party the right to vote their shares by proxy

A shareholder's relation to creditors of the corporation is generally that the shareholder: (A) is a secured creditor (B) is an unsecured creditor (C) has no relation to creditors (D) is a third-party beneficiary to creditors (E) none of the other choices

(C) has no relation to creditors

1. The modern corporation was developed: (A) in England in the Middle Ages (B) in Italy during the Renaissance (C) in the United States during the eighteenth century (D) in Germany during the nineteenth century (E) in New York during the early twentieth century

(C) in the United States during the eighteenth century

1. In a limited partnership the ________ are investors who may not participate in managing the business. (A) restricted partners (B) general partners (C) limited partners (D) nonvoting partners (E) real partners

(C) limited partners

1. The business organization that has at least one general partner and other investors who have limited liability is a: (A) corporation (B) general partnership (C) limited partnership (D) limited liability company (E) proprietorship

(C) limited partnership

1. Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true? (A) each partner has an equal voice in partnership management (B) a majority vote controls ordinary business decisions (C) only managing partners are fully responsible for debts of the partnership (D) regardless of the amount invested in the partnership, each partner has an equal vote (E) all of the other choices are true

(C) only managing partners are fully responsible for debts of the partnership

A corporation separates: (A) ownership from responsibility (B) ownership from profit (C) ownership from control (D) control from losses (E) control from profits

(C) ownership from control

1. In general, limited partners lose their limited liability status by: (A) being a limited partner in another partnership (B) denying association with the partnership (C) participating in managerial decisions in the partnership (D) being a partner in another partnership or by participating in managerial decisions in the partnership (E) being a partner in another partnership or by participating in managerial decisions in the partnership or by denying association with the partnership

(C) participating in managerial decisions in the partnership

1. A is an association of two or more persons to carry on a business as co-owners for profit. (A) proprietorship (B) corporation (C) partnership (D) cooperative (E) all of the other choices

(C) partnership

Legally, the board of directors is the________ of a corporation. (A) principle (B) leader (C) principal (D) judge (E) owner

(C) principal

1. Which of the following statements about a corporation is true? Corporations are not entitled to constitutionally protected: (A) free speech (B) equal protection (C) privileges against self-incrimination (D) freedom from unreasonable searches and seizures (E) none of the other choices are true

(C) privileges against self-incrimination

The most common form of business organization is: (A) joint venture (B) partnership (C) proprietorship (D) corporation (E) none of the other choices

(C) proprietorship

The owners of a corporation are called: (A) partners (B) officers (C) shareholders (D) principals (E) none of the other choices

(C) shareholders

A person doing business for herself is a _______the business is a ___________. (A) partner; partnership (B) general partner; limited partnership (C) sole proprietor; proprietorship (D) shareholder; corporation (E) member;syndicate

(C) sole proprietor; proprietorship

The rules that regulate and govern the internal operations of a corporation are known as: (A) the certificate of incorporation (B) the bond (C) the bylaws (D) statutes of business (E) the corporate constitution

(C) the bylaws

1. In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that: (A) the bylaws had been violated because the Companies' bylaws did not clearly sanction the Board of Directors to manage the business and affairs of the company (B) the bylaws had been violated because the Companies' bylaws clearly sanctioned the Board of Directors to manage the business and affairs of the company (C) the bylaws had not been violated because the Companies' bylaws clearly sanctioned the Board of Directors to manage the business and affairs of the company (D) the bylaws were never properly approved and so there was no case for violation of bylaws (E) none of the other choices are correct

(C) the bylaws had not been violated because the Companies' bylaws clearly sanctioned the Board of Directors to manage the business and affairs of the company

1. The ________ of partnership affairs involves completing any unfinished business and then collecting and distributing the partnership's assets. (A) winding down (B) resetting (C) winding up (D) terminating (E) dissolution

(C) winding up

1. In Zhou v. Bickley, Zhou helped Bickley start a motorcycle repair shop. When they got into a dispute later, the courts held that: (A) Zhou and Bickley were partners, so each was owed the fair market value of his share in the organization (B) Bickley was a partner but breached his duty to Zhou by not working, so could be fired from the partnership (C) Bickley was not a partner, he was an employee subject to wrongful dismissal and could sue for damages for that (D) Zhou and Bickley were not partners, Bickley owed Zhou for money received to start the business run by Bickley (E) none of the other choices

(D) Zhou and Bickley were not partners, Bickley owed Zhou for money received to start the business run by Bickley

1. A limited partnership is different from a general partnership because: (A) a limited partnership can have only two people in active management (B) there are limits to annual capital gains in limited partnership (C) all partners in a limited partnership must actively participate in major managerial decisions (D) a limited partnership may have only one general partner (E) none of the other choices

(D) a limited partnership may have only one general partner

To hold a shareholder meeting, which criteria must be met? (A) a quorum of shareholders must be represented (B) advance notice of the meeting must be given (C) a state representative must be in attendance (D) a quorum of shareholders must be represented and advance notice of the meeting must be given (E) all of the other choices

(D) a quorum of shareholders must be represented and advance notice of the meeting must be given

1. In general, a corporation's _______ , along with an application, must be filed with the appropriate state office, along with payment of a fee to create a corporation. (A) certificate of incorporation (B) proof of funding (C) certificate of credit (D) articles of incorporation (E) documents of incorporation

(D) articles of incorporation

1. In Japan small businesses are: (A) greatly favored by the government (B) exempt from most taxes (C) considered very desirable places to work (D) considered less desirable places to work (E) formed at a much faster rate than in the United States

(D) considered less desirable places to work

1. In Japan small businesses are: (A) greatly favored by the government (B) exempt from most taxes (C) considered very desirable places to work (D) discriminated against by government policy (E) formed at a much faster rate than in the United States

(D) discriminated against by government policy

A(n) is any name other than the name of the individual who owns the business. (A) fake name (B) illegitimate name (C) false name (D) fictitious name (E) confusing name

(D) fictitious name

1. Which of the following is not true about the termination of a limited partnership? (A) the bankruptcy of a limited partner does not force termination (B) the business may continue to operate during dissolution (C) creditors' rights come before partners' rights to funds (D) limited and general partners share assets equally at the same time after the creditors are paid (E) all of the other choices are true

(D) limited and general partners share assets equally at the same time after the creditors are paid

Most shareholders give third parties their....... It is a written authorization to cast their vote so they do not have to attend a shareholder meeting in person. (A) charter (B) shares (C) resolution (D) proxy (E) none of the other choices

(D) proxy

A close corporation is one: (A) with a pending application for incorporation (B) with stock that can only be traded with other corporations (C) that is in the process of dissolution (D) that has a small number of stockholders (E) that issues only preferred stock

(D) that has a small number of stockholders

1. To create a corporation: (A) articles of incorporation and an application must first be filed with the federal government (B) the federal government issues a certificate of incorporation, which must be filed with an application to do business in the relevant states (C) the incorporators must hold a public organization meeting, then file articles of incorporation (D) the corporation's articles of incorporation are filed with the appropriate officer of the state (E) none of the other choices

(D) the corporation's articles of incorporation are filed with the appropriate officer of the state

Shareholders of a corporation: (A) manage the corporation (B) delegate responsibility for management to hired managers (C) elect all vice presidents of the corporation (D) vote on matters that may effect a change in the corporation's structure (E) issue the employment rules of a corporation

(D) vote on matters that may effect a change in the corporation's structure

1. A partnership can begin with: (A) an implied agreement that can be inferred from the conduct of the parties doing business (B) a written agreement (C) an oral agreement (D) a written agreement or an oral agreement only (E) a written agreement or an oral agreement or an implied agreement that can be inferred from the conduct of the parties doing business

(E) a written agreement or an oral agreement or an implied agreement that can be inferred from the conduct of the parties doing business

The articles of incorporation usually include all of the following except: (A) classes of stock to be issued (B) address of the corporation (C) purpose of the business (D) address of the corporation and the purpose of the business only are included (E) address of the corporation and the purpose of the business and classes of stock to be issued are included

(E) address of the corporation and the purpose of the business and classes of stock to be issued are included

The oldest and simplest form of business organization is the: (A) joint venture (B) limited partnership (C) syndicate (D) cooperative (E) proprietorship

(E) proprietorship

Directors of a corporation may be: (A) removed for cause (B) reprimanded but not removed during term in office (C) liable for a breach of duty (D) reprimanded but not removed during term in office but held liable for breach of duty (E) removed for cause and be liable for a breach of duty

(E) removed for cause and be liable for a breach of duty

A corporation consists of: (A) shareholders (B) board of directors (C) officers or managers (D) shareholders and board of directors (E) shareholders, board of directors, and officers or managers

(E) shareholders, board of directors, and officers or managers

1. Under the Uniform Limited Partnership Act, a written partnership agreement must include: (A) the name of the business (B) the type or character of the business (C) the contributions of each partner (D) the name of the business and the type or character of the business (E) the name of the business and the type or character of the business and the contributions of each partner

(E) the name of the business and the type or character of the business and the contributions of each partner