Exam 12: Business Organizations

In Eagles Landing Development, LLC v. Eagles Landing Apartments, LP, where the LLC built apartments for the LP, but the LP did not pay all sums owed, the appeals court held that the limited partners in the LP were not liable for the unpaid debt of the LP.

Compared to most other countries, to start a business in the U.S.:

About ____ of retail sales in the U.S. takes place in franchise operations.

Under traditional common law rules, a partnership:

The sale of shares in a closed corporation is similar to the sale of a sole proprietorship because:

Monopoly power was often granted by early corporate charters.

In Zhou v. Bickley, Zhou helped Bickley start a motorcycle repair shop. When they got into a dispute later, the courts held that they were not partners who had invested different sums of money in the business.

Dissolution of a corporation:

In Zhou v. Bickley, Zhou helped Bickley start a motorcycle repair shop. When they got into a dispute later, the courts held that Bickley was a sole proprietor who had borrowed money from Zhou for which he was liable

By law, partnership agreements must specify compensation arrangements for any partners paid by the partnership itself.

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

Partners in partnerships and shareholders in corporations, unlike proprietors, have liability limited to their amount of investment.

The formation of limited partnerships is governed by state law, not common law.

Which of the following statement(s) is (are) true?

Before franchises may be sold, the parent company must:

Shareholders are the owners of a corporation.

In In re 1545 Ocean Avenue, LLC, when the members of an LLC got into a dispute the party wishing to keep the entity in existence had to buy out the unhappy member.

At a shareholder meeting, important corporate business is presented to the shareholders in the form of ____, which shareholders vote to approve or disapprove.

A corporation's board of directors hires ____ to run the business.

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