Exam 12: Business Organizations

Once elected, directors of a corporation must serve their full terms, unless they choose to resign, and may not be removed from office.

The shareholders of a corporation have the right to vote to dissolve the corporation.

States regulation of the sale of franchises:

Franchisors may charge franchisees an up-front payment, but may not charge them a royalty fee based on annual sales.

The rules that regulate and govern the internal operations of a corporation are known as:

By law, shareholders in a corporation must be given stock certificates as a sign of formal ownership.

There are close to 30 million businesses in the U.S.

Directors of a corporation have great leeway in making decisions about the business.

In Storetrax.com v. Gurland, where Gurland, the founder of Storetrax.com, was removed as president but denied severance pay and sued for that, the appeals court held that he was:

Proprietorships must receive a license from the state be able to operate a business legally.

When a court "pierces the corporate veil" it:

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

Partners in a partnership, like corporate shareholders, have the right to sell their ownership shares whenever they want to whoever they want.

The ____ are the "rules" that regulate and govern the internal operations of the corporation.

The oldest and simplest form of business organization is the:

To create a limited liability company, creators must produce:

The dissolution of a partnership occurs:

In Eagles Landing Development, LLC vs. Eagles Landing Apartments, LP, where the LLC built apartments for the LP, but the LLC was not paid for all its work, the OOC sued some limited partners in the LP for payment. The appeals court held that:

When a court holds shareholders personally liable for corporate debts it is said to be:

The name and address of a corporation, the name and address of the corporation's registered agent, and the purpose of the business are all examples of things that are generally included in: