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:

Directors are under a ____ to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs.

The oldest and simplest form of business organization is:

Top management of a public corporation legally report to the shareholders.

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.

Shareholders of a corporation:

The articles of incorporation usually include all of the following except:

A corporation consists of:

A shareholder's relation to creditors of the corporation is generally that the shareholder:

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

In a sole proprietorship, the capital usually:

Limited liability companies are taxed like partnerships, but have the liability rules of a corporation.

A limited liability company may be terminated:

____ are those with stock traded on a stock exchange and, therefore, are likely to have many shareholders.

A corporation separates:

There are two types of dissolution of a corporation:

The majority of businesses are corporations.

Limited liability companies are usually retained as shell operations.

General partners in a limited partnership:

The owners of a limited liability company are called members.