Bus law exam 3

partners in a partnership owe each other

a fiduciary duty

a sole proprietorship comes into existence when

a person begins to do business for herself

a secured creditor is one who

can take a debtor's property to try to satisfy the debt

a secured creditor is one who:

can take a debtor's property to try to satisfy the debt

when a business lends another business money, it should perfect its security interest by

filing its financing statement with the state secretary of state

when a business lends another business money, it should perfect its security interest by

filling its financing statement with the state secretary of state

billy wants to borrow $10,000 to start a male belly dancing business. Creditors are not anxious to lend him the funds. Billy convinces Gary to back up his credit. Gary is

the surety

tiny borrows $2000 from First Bank. Mike is the surety on the lawn. Tiny defaults and first requires Mike to pay the balance of the loan. In this case, Mike may sue

tiny for reimbursed or exonerate him

in general, if a partnership agreement does not specify what happens in case of the death or departure of a partner, one looks to

uniform Partnership Act

in general, if a partnership agreement does not specify what happens in case of the death or departure of a partner, one looks to

uniform partnership act

there are two types of dissolution of a corporation

voluntary and involuntary

according to the UCC, a creditor may responded a product in which it has a security interest

- without judicial process - so long as this doesn't cause a breach of peace

A mortgage will typically contain

-a description of the property -the amount of the debt involved

the owner of a sole proprietorship

-is legally the same as the business - is taxed same as the business - may hire any number of employees

a limited liability company

-is taxed like a partnership -has the liability of a corporation

brandon files for a chapter 11 bankruptcy on behalf of his company, Brandon's BBQ the company is allowed to continue it operations during this period. Brandon is:

-the debtor in possession -a trustee

which of the following items are not distinguished by a chapter 7 bankruptcy

alimony

a written partnership agreement typically specifies the following except

all of the above - the ownership interest of the partners - the method of accounting to be used - the name of the partnership business -the procedures for dissolution of the partnership

unless other wise stated by contract, the law of partnership presumes which of the following not to be true

all of the above are true - each partner has an equal voice in partnership management -a majority vote controls ordinary business decisions -profits are to be divided among the partners -regardless of the amount invested in the partnership, each partner has an equal vote

unless otherwise stated by contract, the law presumes which of the following out to be true

all of the above are true -each partner has an equal voice and partnership management - a majority vote controlled ordinary business decisions - profits are to be divided among the partners -regardless of the amount that's in the partnership, each partner has an equal vote

The articles of incorporation usually provide all of the following except

all of the above must be provided -name of the corporation -names of all shareholders -name of the registered agent -classes of stock being issued

a written partnership agreement typically specifies the following except

all the above -the ownership interest of the partners - the method of accounting to be used -the name of the partnership business -the procedures for dissolution of the partnerip

Chapter 11 bankruptcies, which are filed by businesses

allow a business to keep operating under reorganization of its activities and its debts

Chapter 11 bankruptcy's which are filed by businesses

allow a business to keep operating under reorganization of its activities and its debts

voluntary chapter 13 bankruptcies

apply to individuals only

to create a limited liability company, creators must produce

articles of organization

the final stage of bankruptcy is known as

discharging bankruptcy

In a sole proprietorship, profits are taxed to the

individual owner of the proprietorship

In a ___, the debit or repay by regular monthly payments

installment account

bankruptcy law

is federal statutory law

a certification of incorporation from the government

is necessary for a corporation to be recognize legally

the primary distinction in secured credit transaction is whether the property:

is real or personal

a creditor is a person or business who

lends money to someone else

accreditor is a person or business who

lends money to someone else

the business organization that has a least one general partner and other investors who have limited liability is a

limited partnership

under chapter 13, which kind of that is subject to a different repayment schedule

long term, secure debt

don borrows $90,000 to buy a home. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on DOn's house and sells it in a judicial sale. The bank gets $95,000 for the house. In this case, it:

must return the extra $5,000 to Don

under a floating lien

new inventory is used to replace collateral that is sold

the rules that regulate and govern the internal operations of a corporation are known as

none of the above

if a debtor refuses to pay an unsecured creditor, and the debtor in insolvent, the unsecured creditor collects

nothing

if a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the unsecured creditor collects:

nothing

a ____ is an association of two or more persons to carry on a business as co-owners for profit

partnership

to create a legally valid security interest, a business must ensure that the interest is

perfected

in order to establish a superior right, a creditor must

prohibit a default

in a (an) ______, the debtor makes a minimum monthly payment and more debt can be added to the account over time

revolving account

in the case of bankruptcy, which of the following classes of creditors have highest priority

secured creditors

the board of directors of the corporation are elected by

shareholders

the law of mortgages comes from

state real estate law

candy bought a sofa from Max on credit. She is to make 5 monthly payments of $200 each. After one month Candy stops making payments. Max is a secured creditor; he may:

take steps to repossess the sofa from candy