Exam 12: Business Organizations

Directors of a corporation are held to a fiduciary duty of loyalty to the managers of the corporation.

Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true?

If partners in a partnership are in a dispute not covered in the partnership agreement, a court uses the Uniform Partnership Act, if the state has adopted it, to settle the matter.

Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true?

Which of the following is a right of a limited partner in a limited partnership:

According to the IRS, a limited liability company must exist:

The winding up of partnership affairs completes any unfinished business and distributing the partnership's assets.

Many states now allow groups of doctors in practice together to form a particular legal entity allowed by statute called:

In most circumstances, a partnership is now treated as:

The modern "liberal" general incorporation statutes that we have today were adopted in the 1930s.

A limited partnership is a special form of a general partnership.

Certificates of limited partnership must include information about the proportion of the profits or compensation that partners are entitled to receive.

A ____ requires that each partner act in good faith for the benefit of the partnership.

A ____ is a business organization that is treated like a corporation for liability purposes but like a partnership for federal tax purposes.

Limited liability companies need no formal document to begin operations; an oral agreement can be sufficient.

The most common form of franchise is the product distributorship.

Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except:

The sole proprietorship is the most common business organization in the U.S.

Like a general partnership, all partners in a limited partnership have unlimited personal liability for the debts of the business venture.

In Ironite Products v. Samuels, where a major shareholder of a company disputes changes in the bylaws, the appeals court held that the corporation was not due Fifth Amendment protection about producing documents that could be incriminating.