business law chp 19,20,21

A limited partner will be deemed by the courts to be a general partner if he or she: participates in the overall management of the business. has no contact with the managers of the company. has no involvement in the company besides receiving profit payments. unintentionally violates the duty of care owed to the corporation.

participates in the overall management of the business.

A business owned and operated by two or more persons is a: domestic franchise. sole proprietorship. partnership. subchapter S corporation.

partnership.

A principal must reimburse an agent for any loss or damage suffered by the agent in the legitimate: ownership of property. enforcement of rules. performance of duties. transfer of power.

performance of duties.

If a third party knows of the agency and knows the identity of the principal, the agent cannot be held ______________ as long as the agent acts within the scope of his or her actual authority. in contempt of court personally liable without bail against his or her will

personally liable

A(n) _________ is the minimum number of shares necessary to be present at a meeting for a corporation in order for action to be taken. quorum organizer incorporator by-limit

quorum

Chapter 13 bankruptcy is sometimes referred to as a ______________________. reorganization bankruptcy realignment bankruptcy recharging bankruptcy revision bankruptcy

reorganization bankruptcy

In a partnership each partner shares in the profits of the business, as well as the ______ of the business. stock assets member units shareholder's equity

shareholder's equity (not this one)

A business owned and operated by one person is called a(n): limited partnership. limited liability company (LLC). sole proprietorship. 501(c) corporation.

sole proprietorship.

All but one of the following organizational forms have limited liability. This exception is the: sole proprietorship. corporation. subchapter S corporation. limited partnership.

sole proprietorship.

A person who is delegated the authority to act only in a particular kind of transaction, under definite instructions, and with specific limits on the scope of his or her authority, is called a: general agent. hired agent. special agent. super-agent.

special agent.

Examples of debts discharged under Chapter 7 bankruptcy include all of the following EXCEPT: credit card bills. medical bills. student loans. lawsuit judgments.

student loans.

A company must comply with tax regulations, such as the restriction that there are a limited number of shareholders, in order to qualify as a: limited partnership. sole proprietorship. subchapter S corporation. joint venture.

subchapter S corporation.

An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on: renewal. amendment. termination. continuation.

termination

A creditor is an individual or business: who borrows money. who counts money. who guides the bankruptcy process. to which money is owed.

to which money is owed.

A record of bankruptcy may remain on one's record for up to: 3 years. 5 years. 7 years. 10 years.

10 years.

In a sole proprietorship, the entrepreneur has to obtain a general ____________from his or her local municipality. business license release waiver accounting

business license

A corporation usually has_________, which provide rules for the corporation. bylaws articles of incorporation common laws statutory laws

bylaws

A director has a legal and ethical obligation to act diligently and prudently in conducting the affairs of the corporation. This is called the: duty of care. psychological duty. legal responsibility. corporate pledge.

duty of care.

If a person acts as an agent for more than one party with their knowledge, the agent is entitled to receive compensation from: each principal. each agent. his or her first employer. his or her last employer.

each principal.

Bankruptcy is governed by ________ law. state federal who guides the bankruptcy process. municipal

federal

In a corporation, directors and officers of the company in which they hold their positions have a _____________ to the company. dependability fiduciary responsibility time bound duty profit responsibility

fiduciary responsibility

A __________ is a person authorized to assume complete charge of the principal's business and is entrusted with general authority to act for the principal in all business related matters. general agent hired agent special agent super-agent

general agent

The party who has taken commercial paper in good faith and for value, before maturity, and without actual or constructive notice of any defects in the instrument is a(n): incorporator. endorser of the instrument. holder in due course. drawer.

holder in due course.

An agency by agreement appointing an agent for a two year period must comply with the: Statute of Limitations. Statute of Frauds. Statute of Encumbrances. Statute of Equitable Tolling.

Statute of Frauds.

Chapter 13 bankruptcy involves a debtor retaining their property and paying back all or portion of their debt __________ over a period of three to five years. at market value interest at triple interest at double interest interest free

interest free

A(n) ______________ filing occurs when creditors pressure the debtor to file. involuntary voluntary advisory concurrent

involuntary

At times, individuals can become partners for only a short period of time, or for only a single project. This activity is defined as a(n): LLP. partnership. LLC. joint venture.

joint venture.

Many people in the United States have an entrepreneurial spirit that encourages them to pursue the "American dream" of: owning and operating their own business. having employment security. having a leisurely life. traveling throughout the world.

owning and operating their own business.

A corporation drafts articles of incorporation that list the general powers of the company. True False

True

A person who represents another is known as an agent. True False

True

A principal is responsible to third parties for all agreements made by the agent on behalf of the principal if the agent acted within the scope of his or her authority. True False

True

A secured debt is a loan for which a specific asset is used as collateral, or pledged. True False

True

An individual or business that owes money is said to be a debtor. True False

True

Anyone who is legally competent to act for himself or herself may delegate that legal right to perform to another. True False

True

Bankruptcy law is divided into chapters. True False

True

Chapter 12 bankruptcy was specifically created to adjust the debts of family farmers or fishers who earn a(n) ____________ income. annual minimal bi-annual part time

annual

A disadvantage of a sole proprietorship is that the owner has restricted authority to run their business. True False

False

A principal can pay the agent the compensation they see is fair, not necessarily the amount agreed to in the contract. True False

False

Although limited liability companies provide all of the owners with limited liability, these owners are not permitted to participate in the management of the business. True False

False

Bankruptcy filings may be made for the purpose of defrauding creditors. True False

False

Corporations are always owned by a chief executive officer (CEO). True False

False

An agent must keep accurate accounts of his or her transactions conducted as part of the: termination clause. appointment letter. agency agreement. articles of incorporation.

agency agreement.

A principal may not revoke an agency contract if the agent has an interest in the subject matter of the agency in addition to the remuneration that he or she receives for services. Such a contract is called an irrevocable agency, which is also known as: agency coupled with an interest. agency by revocation. agency by ratification. apparent authority.

agency coupled with an interest.

Organizational forms that are referred to as not-for-profits may include: limited liability corporations. joint ventures. charitable organizations. industrial corporations.

charitable organizations.

An agreement between a principal and an agent by which the agent is vested with authority to represent the principal is known as a ______________. contract of adhesion contract of agency contract of incorporation contract of fallacy

contract of agency

A business that is a separate legal entity is a(n): partnership. sole proprietorship. joint venture. corporation.

corporation

Chapter 11 bankruptcy is mostly used by_____________. corporations sole proprietorships individuals municipalities

corporations