Exam 12: Business Organizations

Some states have adopted regulations for the sale of franchises that go beyond the federal requirements.

In Storetrax.com v. Gurland, where Gurland, founder and president of Storetrax, was fired, the appeals court held that it was not a breach of fiduciary duty for Gurland to be paid severance pay.

In a limited partnership, the general partner has sole responsibility for managing the business and may be personally liable to the partnership's creditors.

Before franchises may be sold, the parent company must:

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

The articles of incorporation include the classes of stock to be issued and the purpose of the business.

During the course of a partnership's winding-up process, the partners owe each other:

Most shareholders give third parties their ____. It is a written authorization to cast their vote so they do not have to attend a shareholder meeting in person.

General partners in a limited partnership:

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

A limited partnership is different from a general partnership because:

In Zhou v. Bickley, Zhou helped Bickley start a motorcycle repair shop. When they got into a dispute later, the courts held that:

The articles of organization filed for a LLC must include:

Corporations are "persons" that enjoy many of the same rights and privileges accorded real persons.

The shareholders of a corporation generally have the right(s) to:

The most common form of business organization is:

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

If a shareholder works for the business then he:

Which of the following is a decision that would most likely require the consent of all partners:

If a corporation is dissolved voluntarily, there must be a "winding up" of its affairs.