Description
A partnership arises from an agreement between two or more parties to carry on a business for profit.Group of answer choicesTrueFalseFlag question: Question 2Question 21 ptsStefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally bindingGroup of answer choicesonly if a copy of the agreement is filed in the appropriate state office.only if the agreement is printed in hard copy and signed by the parties.only if the parties exchange valid consideration.without more.Flag question: Question 3Question 31 ptsDissolution of a partnership can be brought about only by operation of law.Group of answer choicesTrueFalseFlag question: Question 4Question 41 ptsIn a limited partnership, a limited partner has the right to participate in the day to day operation of the partnership.Group of answer choicesTrueFalseFlag question: Question 5Question 51 ptsMembers of a limited liability company are not allowed to participate fully in management activities.Group of answer choicesTrueFalseFlag question: Question 6Question 61 ptsThe liability of the members of a limited liability company for the firms’ debts and obligations is unlimited.Group of answer choicesTrueFalseFlag question: Question 7Question 71 ptsA corporation enjoys many of the same rights under the law that natural persons enjoy.Group of answer choicesTrueFalseFlag question: Question 8Question 81 ptsTo pierce the corporate veil is to disregard the corporate entity and hold the directorsliable for a corporate obligation.Group of answer choicesTrueFalseFlag question: Question 9Question 91 ptsAn S corporation qualifies for special income tax treatment.Group of answer choicesTrueFalseFlag question: Question 10Question 101 ptsThe acquisition of a share of stock makes a person a shareholder, but not an owner, of a corporation.Group of answer choicesTrueFalseFlag question: Question 11Question 111 ptsSharon is a shareholder in Travel Adventures Inc. As a shareholder, SharonGroup of answer choicesmust approve fundamental changes affecting the corporation.is responsible for the corporation’s daily management.none of the choices.is personally liable for the corporation’s debts.Flag question: Question 12Question 121 ptsThe board of directors hires the corporation’s officers.Group of answer choicesTrueFalseFlag question: Question 13Question 131 ptsThe primary function of a corporation’s officers is to authorize major corporate policy decisions.Group of answer choicesTrueFalseFlag question: Question 14Question 141 ptsInitiating and negotiating the sale and lease of corporate assets outside the regular course of business is a responsibility of the corporation’sGroup of answer choicesboard of directors.high-level managers.chief executive officer.shareholders.Flag question: Question 15Question 151 ptsThe Securities Exchange Act of 1934 requires that a regulated corporation make periodic disclosures about its organization and financial situation.Group of answer choicesTrueFalseFlag question: Question 16Question 161 ptsIn a merger, the surviving corporation assumes all of the assets and liabilities of the disappearing corporation.Group of answer choicesTrueFalseFlag question: Question 17Question 171 ptsThe proprietor of a sole proprietorship does not bear the burden of all liabilities incurred by the business.Group of answer choicesTrueFalseFlag question: Question 18Question 181 ptsIn a limited partnership, a limited partner has the right to participate in the operation of the partnership.Group of answer choicesTrueFalseFlag question: Question 19Question 191 ptsCorporate officers do not act as agents of the corporation.Group of answer choicesTrueFalseFlag question: Question 20Question 201 ptsWhen directors and officers do not act in the best interests of their corporations, the shareholders may sue them on the company’s behalf.Group of answer choicesTrueFalse