Exam 12: Business Organizations

Shareholders have the right to instruct directors or top managers how to run the corporation.

A corporation in which the shares are held by one shareholder or a small group of shareholders and the stock is not actively traded is a:

A sole proprietorship comes into existence when:

Directors of a corporation are responsible for making basic corporate policy.

Unless its articles of incorporation provide otherwise, a corporation:

A person doing business for herself is a ____; the business is a ____.

LLC members have unlimited liability for torts committed in the name of the LLC.

A limited liability company:

Most states have passed statutes that say that members of limited liability companies will be personally liable for debts of the business.

Electing a board of directors, enacting the corporation's bylaws, and issuing the corporation's stock are all things that occur:

About ____ of retail sales in the U.S. takes place in franchise operations.

In In re 1545 Ocean Avenue, LLC, when the members of an LLC got into a dispute the court reformed the structure of the entity.

At a shareholder meeting, important corporate business is presented to the shareholders in the form of ____, which shareholders vote to approve or disapprove.

The New York Stock Exchange is an example of a stock exchange where:

In most states a limited partnership does not have to file what information with the appropriate state official?

By law, all partners in a general partnership must have equal votes.

A business organization in which some of the partners are not liable for partnership debts is called a:

When a court "pierces the corporate veil" it:

Double taxation on profits is:

In Dunkin' Donuts Franchised Restaurants LLC v. Sandip, Inc., where Dunkin' Donuts claimed that Sandip breached their franchise agreements and Sandip protested that Dunkin' Donuts was not allowing them a reasonable chance to sell the franchise, the court held that: