Exam 14: Business Organizations

In a closely held corporation,which of the following lawsuits is likely to be brought by a minority shareholder on behalf of a corporation if the majority is acting illegally or oppresses the rights of the minority shareholders?

Steve has been asked to join a partnership.What must Steve consider when choosing to become a general or limited partner?

What are some of the significant factors to consider when choosing a form of business?

When organizations are owned by only a few persons,they are said to be ______.

What is key to a partnership's existence?

What are the drawbacks of the corporate form of organization?

List the actions by a limited partner that are not considered participation in management.

How can business organizations be classified based on the number of persons who own them? Give one example of each.

Despite the advantages,there is some concern that the overuse of deferred prosecution agreements could

Which of the following has a perpetual existence so long as the number of shareholders is limited?

The creation of a(n)______ is automatic based on business conduct and is modified by agreement.

Which of the following forms of organization is most easily formed at minimal costs?

In a closely held corporation,the majority shareholders

In a limited liability company,the transferability of a member's interest

In the context of the continuity of limited liability companies (LLCs),which of the following statements is true?

A business is likely to shift away from the proprietorship form as it becomes more successful.

To what extent are partners in a general partnership liable for an organization's debts?

Why are general partnerships considered to be easily dissolvable?

The ______,by which the corporate veil can be pierced,may also be used to impose personal liability upon corporate officers,directors,and stockholders.

In a(n)______,the shareholders are taxed only on income distributed.