Exam 19: Forms of Business Organizations.

Sarah Smith works as a laser technician for a local dermatology center consisting of physicians operating under a partnership agreement.Sarah purchased supplies through the mail from a medical supply facility totaling $5,000.She signed the contract agreeing to pay for the supplies in her name,Sarah Smith.A few weeks later the dermatologists became embroiled in a bitter dispute regarding profits and terminated the partnership.Unfortunately,the partners were not aware of the debt owed to the medical supply facility; and the bill remained unpaid.Sarah received a bill from the supply company for $5,000.Is she liable to the medical supply company,and why or why not?

A corporation can conduct business as a(n)__________ in states other than its state of incorporation.

States may not impose a higher fiduciary duty upon partners than that set forth in the Revised Uniform Partnership Act.

In the case ofEstate of Countryman v.Farmers Cooperative Association discussed in the text,the plaintiffs attempted to hold a member who owned 95% of an LLC personally liable as the LLC's manager,after propane gas delivered by the LLC exploded.How did the court rule?

A shareholder's right of appraisal only applies to transactions that were initially subject to shareholder approval.

Set forth four of the shareholder proposals that must be included in proxy materials according to the Securities and Exchange Commission.

If incorporators cannot show substantial compliance with statutes regarding incorporation but can show that they were unaware of any defect and acted in good faith,a court may treat the entity as a(n):

An S corporation cannot have more than one class of stock.

Which of the following statements is not true regarding the characteristics of a corporation?