Chapter 12 Business Organizations FINA 2244

Partners in a partnership owe each other:

A fiduciary duty to one another

A syndicate refers to:

A group of persons who join together to finance a specific project

Which of the following statement(s) is (are) true?

A limited partnership must have at least one general partner

A partnership can begin with:

A written agreement or an oral agreement or an implied agreement that can be inferred form the conduct of the parties doing business

Disadvantages of the sole proprietorship form are often:

All of the other choices

Factors that influence the choice of a particular form of business organization may include:

All of the other choices

A cooperative is:

An association organized to provide economic service without profit to its members

Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except:

Bankruptcy, withdrawal or death of a partner

Limited partners are similar to corporate shareholders in that:

Both are liable to the extent of their investment only

A limited liability company may be terminated:

By any of the other choices

Before franchises may be sold, the parent company must:

Comply with FTC regulations and perhaps other state regulations

The students at Pig State Univ. who live off campus think the grocery stores charge too much money for the junk food they like to buy. In an effort to save money, they pool their resources to rent a building and buy food in bulk from suppliers. This is likely to be organized as a:

Cooperative

A reason the corporate status is often chosen is:

Corporations have the status of a legal person

The sale of shares in a closed corporation is similar to the sale of a sole proprietorship because:

Determining a market value of the asset may be difficult

The Franchise Rule requires which of the following:

Franchises must be given the offering circular at least 10 days before purchase

Which of the following have unlimited liability for debts of their business?

General partners nd sole proprietors

The shareholders of a corporation generally have the right(s) to:

Give a third party the right to vote their shares by proxy

States regulation of the sale of franchises:

Goes beyond federal requirements in California and some other states

A limited liability company:

Has the liability of a corporation

The dissolution of a partnership may occur:

If a partner is found to be bankrupt or if a partner dies or if the business of the partnership is made unlawful

The modern corporation was developed:

In the United States during the 1700's

In a sole proprietorship, profits are taxed to the:

Individual owner of the proprietorship

Martha and Mary agree to buy a certain piece of property together, develop it, and try to sell it at a profit. This business enterprise would most likely be a:

Joint venture

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

Limited partnership

A shareholder's relation to creditors of the corporation is generally that the shareholder:

None of the other choices

Legally, shareholders of a corporation must:

None of the other choices

The oldest and simplest form of business organization is:

None of the other choices

There are two types of dissolution of a corporation:

None of the other choices

To create a limited liability company, creators must produce:

None of the other choices

Unless its articles of incorporation provide otherwise, a corporation:

None of the other choices

Which form of business incurs double taxation:

None of the other choices

Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true?

Only managing partners are fully responsible for debts of the partnership

In general, limited partners lose their limited liability status by:

Participating in managerial decisions in the partnership

A ____ is an association of two or more persons organized without formality to carry on a business as co-owners for profit.

Partnership

A corporation consists of:

Shareholders, board of directors, and officers or managers

The most common form of business organization is:

Sole proprietorship

A corporation consists of legally distinct groups, not including:

Stakeholders

Today a corporation must be created according to:

State law

Under traditional common law rules, if you wanted to sue a partnership you had to:

Sue each partner individually

Which of the following are not required to be in a certificate of limited partnership:

The business positions to be held by each partner

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

The bylaws

To create a corporation:

The corporation's articles are filed with the appropriate officer of the state

In a sole proprietorship, the owner is:

The individual who began the business and profits and losses are taxed to the owner personally

The profits of partnerships are taxed:

To each partner personally as agreed upon or shared equally

The dissolution of a partnership occurs:

When an event takes place that precludes the partners from continuing in business

A sole proprietorship comes into existence when:

When the individual begins a business where license or permit is not required

The articles of organization filed for a LLC must include: Part 2

Whether it will be managed by its members or by a manger and the address of the company or its registered agents and whether any members are to be liable for company debts

The articles of organization filed for a LLC must include:

Whether it will be managed by its members or by a manger and the names and addresses of members