Daily Double 9A

Debt capital may be __________. A) short- intermediate-, or long-term B) short-or intermediate-term C) intermediate- or long-term D) short-or long-term

D) short-or long-term

Upon its termination a corporation is liquidated, which initially involves satisfying all shareholders and then distributing any remaining assets to creditors. true false

B) False

When it comes to information about income, assets, and liabilities, companies are encouraged but not required to use generally accepted accounting principles. true false

B) False

Written permission to vote a shareholder's stock on a particular issue is called a reservation of rights. true false

B) False

Upon a corporation's liquidation, after the creditors are satisfied, which shareholders receive the next round of distributions up to their stock's redemption value? A) Closely-held B) Preferred C) Publicly-Traded D) Common

B) Preferred

Shareholder liability is restricted to the loss of their investment. which is the essence of ____________. A) absolute immunity B) limited liability C) qualified immunity

B) limited liability

A(n) _____________ is distinguished from a for-profit business in that it is formed primarily to further a specific positive social objective, rather than to seek profit maximization. A) limited liability company B) social business C) S corporation D) C corporation

B) social business

The three traditional business forms are S corporations. limited liability companies, and limited liability partnerships. true false

B) False

The world is now in the midst of the Second Industrial Revolution. true false

B) False

To create a limited liability company (LLC), the owners file articles of incorporation with the state. true false

B) False

Which legal doctrine makes an employer liable for an employee's acts? A) Negligenceper se B) Substantial performance C) Respondeat superior D) Res ipsa loquitur

C) Respondeat superior

How is a limited liability company (LLC) created? A) The owners, called fiduciaries, file articles of incorporation with the state B) The owners, called members, file articles of organization with the Federal Trade Commission (FIC) C) The owners, called members, file articles of organization with the state D) The owners. called fiduciaries, file articles of incorporation with the United States Department of Commerce

C) The owners, called members, file articles of organization with the state

When it comes to information about income, assets, and liabilities, companies must use a set or measurement and disclosure rules known as _____________. A) generally acknowledged accounting paradigms B) generally acknowledged accounting procedures C) generally accepted accounting principles D) generally anticipated accounting procedures

C) generally accepted accounting principles

Whereas corporate ownership interests are called stock or shares, the equity interest of a partner is called a partnership interest. true false

A) True

A sole proprietorship ____________. A) is not an entity B) has a legal existence distinct from its owner C) is not the default form for single-owner enterprises D) is a limited liability company

A) is not an entity

A hostile takeover involves acquiring control or a company in the race or strong ___________. A) management resistance B) resistance from the Securities and Exchange Commission (SEC) C) management suppor D) resistance from the Secretary of State in the state where the company is incorporated

A) management resistance

Although a publicly held corporation may sell its stock to the public. It may not sell bonds. true false

B) False

In a benefit corporation, the directors' exclusive fiduciary duty is to advance the financial interests of shareholders true false

B) False

Shareholder derivative suits are initiated by either the board of directors or senior management when the corporation is being harmed. true false

B) False

One form of shareholder activism is known as going _________, in which a hostile takeover is accomplished by offering current shareholders a __________ offer, a price far above current market value. A) public; firm B) ballistic; tender C) private; tender D) rogue; firm

C) private; tender

The 3 traditional business forms include all of the following EXCEPT? A) Sole Proprietorship B) Corporation C) General Partnership D) Limited Liability Company

D) Limited Liability Company

Which of the following doctrines usually has two elements: (1) misuse of the corporate form and (2) an unjust result if limited liability is allowed to stand? A) Promissory estoppel B) Substantial performance C) Dissolving the corporate shell D) Piercing the corporate veil

D) Piercing the corporate veil

Which of the following entitles a partner to recoup an appropriate share from the other partners when she pays a partnership-related debt? A) Promissory estoppel B) Detrimental reliance C) The right of subornation D) The right of contribution

D) The right of contribution

Under the Revised Uniform Partnership Act (RUPA), general partners ___________ for contract obligations and torts related to the partnership. A) are singularly and severally liable B) have qualified immunity C) are not liable D) are jointly and severally

D) are jointly and severally

Limited liability companies (LLCS) are often referred to as a hybrid form because they are specifically designed to combine certain desired __________ characteristics with those of ___________. A) corporate; sole proprietorships B) general partnership; limited partnerships C) sole proprietorship; general partnerships D) corporate; general partnerships

D) corporate; general partnerships

Shareholder derivative suits are initiated when the corporation is being harmed and ________ take action to protect it. A) the senior executives, but not the board of directors, B) the board of directors, but not the senior executives, C) both the hoard of directors and the senior executives D) neither the board nor the senior executives

D) neither the board nor the senior executives