Exam 12: Business Organizations

In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that:

Which of the following is not true about corporate directors?

Franchises may be terminated by:

Which of the following have unlimited liability for debts of their business?

Legally, the board of directors is the ____ of a corporation.

In Dunkin' Donuts v. Sandip the court held that the parent company (Dunkin') attempted to terminate a franchise operation in violation of the terms of the franchise agreement.

Limited liability is:

The ____ of a limited liability company establishes the company's method of management, allocation of profits and losses among members, restrictions on the transfer of membership interests, and the process to be followed in dissolving the company.

In Ironite Products v. Samuels, where a major shareholder of a company disputes changes in the bylaws, the appeals court held that the bylaws of the company had been changed in violation of company bylaws, so the shareholder must be given control of the company.

A close corporation is one with a capitalization or assets of less than $1 million.

To create a limited liability company, creators must produce:

Which of the following is usually included in the articles of incorporation:

The directors of a corporation are the principal of the corporation.

Unless its articles of incorporation provide for a specified period of duration, a corporation has:

A board of directors' fiduciary duty of loyalty requires that:

Corporate directors are protected from liability for honest mistakes in decisions made by the business judgment rule.

If a partner assigns his interests in a partnership:

Many states allow partnerships to be treated as legal entities for certain purposes.

If a shareholder supplies needed material to the business then he:

Shareholders of a corporation have: