Question 1

The articles of organization filed for a LLC must include:

Accepted Answer

A)  whether it will be managed by its members or by a manager 
B)  the classes of stock to be issued 
C)  the names and addresses of members 
D)  whether it will be managed by its members or by a manager and the names and addresses of members 
E)  whether it will be managed by its members or by a manager, the classes of stock to be issued, and the names and addresses of members 
A)  whether it will be managed by its members or by a manager 
B)  the classes of stock to be issued 
C)  the names and addresses of members 
D)  whether it will be managed by its members or by a manager and the names and addresses of members 
E)  whether it will be managed by its members or by a manager, the classes of stock to be issued, and the names and addresses of members

Question 2

If a member of a limited liability company dies, the company must terminate.

Accepted Answer

A) True 
 B)False

Question 3

Coca-Cola, Microsoft and General Motors are all examples of:

Accepted Answer

A)  corporations 
B)  limited partnerships 
C)  legal partnerships 
D)  sole proprietorships 
E)  none of the other choices are correct 
A)  corporations 
B)  limited partnerships 
C)  legal partnerships 
D)  sole proprietorships 
E)  none of the other choices are correct

Question 4

A(n) ____ is any name other than the name of the individual who owns the business.

Accepted Answer

A)  fake name 
B)  illegitimate name 
C)  false name 
D)  fictitious name 
E)  confusing name 
A)  fake name 
B)  illegitimate name 
C)  false name 
D)  fictitious name 
E)  confusing name

Question 5

Unless the limited partnership agreement holds otherwise, when a limited partnership is dissolved the limited partners receive their share of the profits and their capital contributions:

Accepted Answer

A)  after the general partners get theirs 
B)  after the general partners, but before the creditors 
C)  before general partners receive anything 
D)  before creditors receive anything 
E)  none of the other choices are correct 
A)  after the general partners get theirs 
B)  after the general partners, but before the creditors 
C)  before general partners receive anything 
D)  before creditors receive anything 
E)  none of the other choices are correct

Question 6

Sole proprietorships must register with their state government to be able to operate a business legally.

Accepted Answer

A) True 
 B)False

Question 7

About half the states have adopted the Uniform Partnership Act.

Accepted Answer

A) True 
 B)False

Question 8

Corporations are not provided Fifth Amendment protection against self incrimination.

Accepted Answer

A) True 
 B)False

Question 9

A business's ____ refers to its ability to continue to operate in the event of the death, retirement, or other incapacity of an owner of the business.

Accepted Answer

A)  perpetuity 
B)  lifetime 
C)  continuation 
D)  experience 
E)  none of the other choices are correct 
A)  perpetuity 
B)  lifetime 
C)  continuation 
D)  experience 
E)  none of the other choices are correct

Question 10

A limited liability company:

Accepted Answer

A)  is taxed like a partnership 
B)  has the liability of a corporation 
C)  is taxed like a corporation 
D)  is taxed like a partnership and has the liability of a corporation 
E)  is taxed like a corporation and has the liability of a corporation 
A)  is taxed like a partnership 
B)  has the liability of a corporation 
C)  is taxed like a corporation 
D)  is taxed like a partnership and has the liability of a corporation 
E)  is taxed like a corporation and has the liability of a corporation

Question 11

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:

Accepted Answer

A)  Dunkin' Donuts was entitled to terminate the lease agreement 
B)  Dunkin' Donuts was not entitled to terminate the lease agreement because there was a suitable buyer 
C)  Dunkin' Donuts was not entitled to terminate the lease agreement, even though there was no suitable buyer 
D)  Sandip had the right to terminate the lease agreement and sell the buildings to whoever they wanted 
E)  Sandip had the right to continue using Dunkin' Donuts' marks until they sold the buildings 
A)  Dunkin' Donuts was entitled to terminate the lease agreement 
B)  Dunkin' Donuts was not entitled to terminate the lease agreement because there was a suitable buyer 
C)  Dunkin' Donuts was not entitled to terminate the lease agreement, even though there was no suitable buyer 
D)  Sandip had the right to terminate the lease agreement and sell the buildings to whoever they wanted 
E)  Sandip had the right to continue using Dunkin' Donuts' marks until they sold the buildings

Question 12

Under traditional common law rules, if you wanted to sue a partnership you had to:

Accepted Answer

A)  wait until the partnership was incorporated to sue 
B)  sue the partnership as a group 
C)  sue the state on behalf of the partnership 
D)  have the state sue the partnership 
E)  none of the other choices 
A)  wait until the partnership was incorporated to sue 
B)  sue the partnership as a group 
C)  sue the state on behalf of the partnership 
D)  have the state sue the partnership 
E)  none of the other choices

Question 13

A written partnership agreement typically specifies the following except:

Accepted Answer

A)  the ownership interests of the partners 
B)  the method of accounting to be used 
C)  the name of the partnership business 
D)  the procedures for dissolution of the partnership 
E)  all of the other choices are usually included in the agreement 
A)  the ownership interests of the partners 
B)  the method of accounting to be used 
C)  the name of the partnership business 
D)  the procedures for dissolution of the partnership 
E)  all of the other choices are usually included in the agreement

Question 14

A business's ____ refers to its ability to continue to operate in the event of the death, retirement, or other incapacity of an owner of the business.

Accepted Answer

A)  perpetuity 
B)  lifetime 
C)  duration 
D)  experience 
E)  continuation 
A)  perpetuity 
B)  lifetime 
C)  duration 
D)  experience 
E)  continuation

Question 15

The articles of incorporation set the rules that regulate the internal structure of a corporation.

Accepted Answer

A) True 
 B)False

Question 16

A person doing business for himself or herself is a(n):

Accepted Answer

A)  single proprietor 
B)  sole proprietor 
C)  only proprietor 
D)  partner 
E)  general proprietor 
A)  single proprietor 
B)  sole proprietor 
C)  only proprietor 
D)  partner 
E)  general proprietor

Question 17

Legally, shareholders of a corporation must:

Accepted Answer

A)  manage the corporation 
B)  delegate responsibility for management to hired managers 
C)  elect all vice presidents of the corporation 
D)  issue the employment rules of a corporation 
E)  none of the other choices 
A)  manage the corporation 
B)  delegate responsibility for management to hired managers 
C)  elect all vice presidents of the corporation 
D)  issue the employment rules of a corporation 
E)  none of the other choices

Question 18

The duties owed to shareholder by the board of directors are often affected by the circumstances in which the business finds itself.

Accepted Answer

A) True 
 B)False

Question 19

The retirement of a majority shareholder brings about the termination of the corporation.

Accepted Answer

A) True 
 B)False

Question 20

The disclosure document that franchisors must give to prospective franchise buyers is not required to include which of the following information?

Accepted Answer

A)  an audited financial statement of the franchisor 
B)  the background and experience of the key executives 
C)  the names, addresses, and phone numbers of other franchisees 
D)  list of responsibilities of the franchisor and the franchisee once the deal is made 
E)  all of the other choices must be provided 
A)  an audited financial statement of the franchisor 
B)  the background and experience of the key executives 
C)  the names, addresses, and phone numbers of other franchisees 
D)  list of responsibilities of the franchisor and the franchisee once the deal is made 
E)  all of the other choices must be provided

Exam 12: Business Organizations

The articles of organization filed for a LLC must include:

If a member of a limited liability company dies, the company must terminate.

Coca-Cola, Microsoft and General Motors are all examples of:

A(n) ____ is any name other than the name of the individual who owns the business.

Unless the limited partnership agreement holds otherwise, when a limited partnership is dissolved the limited partners receive their share of the profits and their capital contributions:

Sole proprietorships must register with their state government to be able to operate a business legally.

About half the states have adopted the Uniform Partnership Act.

Corporations are not provided Fifth Amendment protection against self incrimination.

A business's ____ refers to its ability to continue to operate in the event of the death, retirement, or other incapacity of an owner of the business.

A limited liability company:

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:

Under traditional common law rules, if you wanted to sue a partnership you had to:

A written partnership agreement typically specifies the following except:

A business's ____ refers to its ability to continue to operate in the event of the death, retirement, or other incapacity of an owner of the business.

The articles of incorporation set the rules that regulate the internal structure of a corporation.

A person doing business for himself or herself is a(n):

Legally, shareholders of a corporation must:

The duties owed to shareholder by the board of directors are often affected by the circumstances in which the business finds itself.

The retirement of a majority shareholder brings about the termination of the corporation.

The disclosure document that franchisors must give to prospective franchise buyers is not required to include which of the following information?

Todays Business Environment: Law and Ethics

The Court Systems

Trials and Resolving Disputes

The Constitution: Focus on Application to Business

Criminal Law and Business

Elements of Torts

Business Torts and Product Liability

Real and Personal Property

Intellectual Property

Contracts

Domestic and International Sales

Negotiable Instruments, Credit, and Bankruptcy

Agency and the Employment Relationship

Employment and Labor Regulations

Employment Discrimination

The Regulatory Process

Securities Regulation

Consumer Protection

Antitrust Law

Environmental Law

The International Legal Environment of Business

Filters