Question 1

Hank Greenberg was the head of:

Accepted Answer

A) the SEC. 
B) Citigroup. 
C) AIG. 
D) BP. 
A) the SEC. 
B) Citigroup. 
C) AIG. 
D) BP.

Question 2

New members are admitted to an LLC only with approval by a majority of existing members.

Accepted Answer

A) True 
 B)False

Question 3

Lawyers for corporations are required to report misconduct by the corporation to the SEC after they have exhausted all means for an internal correction.

Accepted Answer

A) True 
 B)False

Question 4

A,B,and C are partners in a real estate firm.B has just died.B's widow:

Accepted Answer

A) owns one-third of all the partnership land. 
B) is a tenant in partnership with A and C. 
C) can force the sale of the partnership property. 
D) none of the above 
A) owns one-third of all the partnership land. 
B) is a tenant in partnership with A and C. 
C) can force the sale of the partnership property. 
D) none of the above

Question 5

AIG was not involved in the subprime mortgage debacle.

Accepted Answer

A) True 
 B)False

Question 6

Members of limited liability companies have no right to vote on who should manage their companies.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true about LLPs?​

Accepted Answer

A) ​There is limited liability for the LLP as well as all partners. 
B) ​There is limited liability for the LLP only. 
C) There is limited liability for the LLP and for those partners not involved in the negligent acts. 
D) The liability in an LLP is the same as the liability in limited partnerships. 
A) ​There is limited liability for the LLP as well as all partners. 
B) ​There is limited liability for the LLP only. 
C) There is limited liability for the LLP and for those partners not involved in the negligent acts. 
D) The liability in an LLP is the same as the liability in limited partnerships.

Question 8

A limited partnership:

Accepted Answer

A) requires at least one general partner. 
B) can be created by implication. 
C) must be run by the limited partners. 
D) all of the above 
A) requires at least one general partner. 
B) can be created by implication. 
C) must be run by the limited partners. 
D) all of the above

Question 9

Owners of limited liability companies enjoy flow-through treatment of income and losses.

Accepted Answer

A) True 
 B)False

Question 10

Stock transfer restrictions are void.

Accepted Answer

A) True 
 B)False

Question 11

A partnership by estoppel:

Accepted Answer

A) is the same as a partnership by implication. 
B) results when third parties are led to believe a partnership exists. 
C) is the same as a joint venture. 
D) none of the above 
A) is the same as a partnership by implication. 
B) results when third parties are led to believe a partnership exists. 
C) is the same as a joint venture. 
D) none of the above

Question 12

Under Sarbanes-Oxley,the majority of members of the audit committee must be independent directors.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following forms of business structure has the easiest means of transfer of ownership interests?

Accepted Answer

A) LLCs 
B) LLPs 
C) Subchapter S corporations 
D) C corporations 
A) LLCs 
B) LLPs 
C) Subchapter S corporations 
D) C corporations

Question 14

The sole proprietor's personal assets are subject to business creditor attachment.

Accepted Answer

A) True 
 B)False

Question 15

The articles of incorporation must include the capital stock structure of the corporation.

Accepted Answer

A) True 
 B)False

Question 16

Owners of a limited liability company:

Accepted Answer

A) have unlimited liability for contracts entered into by the LLC. 
B) can transfer their membership as a personal property interest. 
C) cannot assume any management responsibilities. 
D) all of the above 
A) have unlimited liability for contracts entered into by the LLC. 
B) can transfer their membership as a personal property interest. 
C) cannot assume any management responsibilities. 
D) all of the above

Question 17

Watered shares result:

Accepted Answer

A) when a purchaser does not pay full market value for the shares. 
B) when a purchaser does pay more than par value for the shares. 
C) in personal liability for the shareholders. 
D) none of the above 
A) when a purchaser does not pay full market value for the shares. 
B) when a purchaser does pay more than par value for the shares. 
C) in personal liability for the shareholders. 
D) none of the above

Question 18

Subchapter S or S Corporation shareholders have personal liability for corporate debts.

Accepted Answer

A) True 
 B)False

Question 19

A limited liability partnership (LLP):

Accepted Answer

A) is a statutory creature. 
B) is the same as a limited partnership. 
C) is the same as a LLc. 
D) all of the above 
A) is a statutory creature. 
B) is the same as a limited partnership. 
C) is the same as a LLc. 
D) all of the above

Question 20

The sale of the goodwill of a partnership requires unanimous consent.

Accepted Answer

A) True 
 B)False

Hank Greenberg was the head of:

New members are admitted to an LLC only with approval by a majority of existing members.

Lawyers for corporations are required to report misconduct by the corporation to the SEC after they have exhausted all means for an internal correction.

A,B,and C are partners in a real estate firm.B has just died.B's widow:

AIG was not involved in the subprime mortgage debacle.

Members of limited liability companies have no right to vote on who should manage their companies.

Which of the following is true about LLPs?

A limited partnership:

Owners of limited liability companies enjoy flow-through treatment of income and losses.

Stock transfer restrictions are void.

A partnership by estoppel:

Under Sarbanes-Oxley,the majority of members of the audit committee must be independent directors.

Which of the following forms of business structure has the easiest means of transfer of ownership interests?

The sole proprietor's personal assets are subject to business creditor attachment.

The articles of incorporation must include the capital stock structure of the corporation.

Owners of a limited liability company:

Watered shares result:

Subchapter S or S Corporation shareholders have personal liability for corporate debts.

A limited liability partnership (LLP):

The sale of the goodwill of a partnership requires unanimous consent.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 17: Governance and Structure: Forms of Doing Business

Hank Greenberg was the head of:

New members are admitted to an LLC only with approval by a majority of existing members.

Lawyers for corporations are required to report misconduct by the corporation to the SEC after they have exhausted all means for an internal correction.

A,B,and C are partners in a real estate firm.B has just died.B's widow:

AIG was not involved in the subprime mortgage debacle.

Members of limited liability companies have no right to vote on who should manage their companies.

Which of the following is true about LLPs?​

A limited partnership:

Owners of limited liability companies enjoy flow-through treatment of income and losses.

Stock transfer restrictions are void.

A partnership by estoppel:

Under Sarbanes-Oxley,the majority of members of the audit committee must be independent directors.

Which of the following forms of business structure has the easiest means of transfer of ownership interests?

The sole proprietor's personal assets are subject to business creditor attachment.

The articles of incorporation must include the capital stock structure of the corporation.

Owners of a limited liability company:

Watered shares result:

Subchapter S or S Corporation shareholders have personal liability for corporate debts.

A limited liability partnership (LLP):

The sale of the goodwill of a partnership requires unanimous consent.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Which of the following is true about LLPs?