Exam 12: Business Organizations

In general, limited partners lose their limited liability status by:

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.

A business organization made up of two or more persons who have entered into an agreement to carry on a business venture for a profit, and not all persons have the right to participate in management decisions is a:

A(n) ____ of a corporation involves approval of the shareholders and the board of directors.

In a partnership, partners are presumed to place their individual interests above those of the partnership.

A limited partnership is usually dissolved by the bankruptcy of:

The owners of limited liability companies are called shareholders.

To terminate a partnership, the partners must go through a deconstruction process.

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

Which of the following could lead to the dissolution of a partnership:

In Dunkin' Donuts v. Sandip the court held that the parent company (Dunkin') properly terminated a franchise operation due to violations of operating requirements.

In Storetrax.com v. Gurland, where Gurland, founder and president of Storetrax, was fired, the appeals court held that it was improper for a major shareholder to also serve on the board and as president, so he could be fired.

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

Unlike a corporation:

Sales of ____ and ____ can be difficult because determining the market value of the asset may be difficult.

The profits of partnerships are taxed:

The company name, the address of the company or its registered agent, the names and addresses of company members and whether any members are to be liable for company debts are all included in a limited liability company's:

A certification of incorporation from the government:

Which of the following may be specified by the franchisor:

Electing a board of directors, enacting the corporation's bylaws, and issuing the corporation's stock are all things that occur: