Pf 060469rr business organizations | Management homework help

Q 060469RR  Business Organizations


1. Melanie and Clay are partners in a law firm that’s a general partnership. Melanie fails to respond to a lawsuit against a client in time, and the client is found liable on a $1 million verdict. The client files a lawsuit suit against Melanie and Clay. Which of the following statements about this set of facts is true?

A. Only Melanie can be held liable because Clay wasn’t involved with the case.

B. Only Melanie can be held liable because she committed the wrong.

C. Only the partnership can be held liable; Melanie and Clay aren’t personally liable.

D. Either Melanie or Clay may be held jointly and severally liable.

2. Adam is president of Well, Inc. The board of directors instructs Bob not to borrow any money on behalf of the corporation. Bob does so anyway, and the corporation lacks income and assets to pay the debt. Bob will be personally liable for the debt under the

A. fairness rule.

B. actual authority rule.

C. business judgment rule.

D. corporate opportunity doctrine.

3. Crawford, Inc., would like to own some land owned by Toxic Waste, Inc., to build a storage warehouse for inventory. However, Crawford doesn’t want to be responsible for the liabilities of Toxic Waste. The best method of accomplishing Crawford’s goals is

A. stock acquisition.

B. consolidation.

C. asset acquisition.

D. merger.

4. If a regulation affecting corporations is federal, the authority for that regulation likely derives from

A. police power.

B. executive orders.

C. the Commerce Clause.

D. the Supremacy Clause.

5. Under the Revised Uniform Partnership Act,

A. the partnership is an aggregate rather than an entity in its own right.

B. partners don’t have transferable economic interests.

C. partnership property is owned by the partnership.

D. partners are co-owners of partnership property.

6. Brenda is on the board of directors for Money Company. Brenda rarely attends board meetings and doesn’t pay attention when she does attend. Brenda usually votes like her friend Sadie, who is also on the board. Brenda voted for some proposals that harmed the company. Brenda likely violated

A. her duty of obedience.

B. the fairness rule.

C. the actual authority rule.

D. her duty of due diligence.

7. Ken is the president of a large energy company. Company executives approached Ken about purchasing some smaller companies to expand the business. Ken read the reports explaining the potential risk and return of the investment, and he decided the purchase appeared to be a good investment. Unfortunately, Ken was wrong, and the purchase caused the company to lose millions of dollars. Based on these facts, Ken

A. should benefit from the business judgment rule.             

B. violated his duty of loyalty to the corporation.

C. violated his duty of due diligence to the corporation.

D. should benefit from the fairness rule.

8. An advantage of an S corporation is that shareholders can avoid

A. estoppel.

B. double taxation.

C. bylaws.

D. insider trading.

9. Steve decides to incorporate his business, but he thinks it’s too expensive to hire an attorney to advise him of the requirements. Steve merely changes the name on the sign outside from Steve’s to Steve, Inc. One of Steve’s customers brings suit against Steve, Inc., based on an allegedly defective product sold through his business. Steve defends on the basis that Steve, Inc., doesn’t exist. Which of the following statements about this set of facts is true?

A. Steve is wrong; a de facto corporation exists.

B. Steve is wrong; a de jure corporation exists.

C. Steve is wrong; a corporation by estoppel exists.

D. Steve is correct; no corporation exists.

10. Jennie owns shares in Superstore, Inc. A vote about whether Superstore should expand its operations to China is coming up. Jennie thinks this is a good idea, but she doesn’t own enough shares to control the outcome of the vote. Jennie could increase the chance that the vote will go her way by

A. entering into a pooling agreement.

B. offering to give someone else a proxy.

C. filing a derivative suit.

D. making a shareholder proposal.

11. Sidney and Nikki are law partners in a general partnership. Nikki decides to take a position at another law firm. Nikki notifies Sidney that she’s leaving the partnership. This set of facts constitutes a dissociation and dissolution by

A. act of a partner.

B. consent.

C. operation of law.

D. judicial decree.

12. Sal is a shareholder in XYZ Corporation. XYZ Corporation made defective products, and many individuals have filed lawsuits due to the defects. As a shareholder, Sal may

A. be held personally liable only if the corporation was aware of the defects.

B. be held personally liable for the defects.

C. not be held personally liable for the defects.

D. be held personally liable only if the plaintiffs name Sal as a defendant.

13. Herbie owns a pizza parlor in New York. Herbie didn’t file any documents to create the business entity, he makes all the business decisions, and he retains all profit after overhead is paid. Herbie owns a

A. corporation

B. limited liability company.

C. partnership.

D. sole proprietorship.

14. Stuart and Cole enter a business venture in which they both agree to contribute funds, money, and time to a sporting goods store. Furthermore, the two agree to equally split all profits. Stuart and Cole have entered into a

A. limited liability company.

B. sole proprietorship.

C. partnership.

D. corporation.

15. Tom is president of Big Drug, Inc. Tom receives a phone call from a federal agency informing him that a new drug owned by Big Drug will be approved for sale to the public. Tom knows that this drug will be very popular and will cause a significant increase in the company’s profits. Tom quickly purchases as much Big Drug stock as he can afford. Then, when the federal agency formally announces approval of the drug, Big Drug stock triples in value, and Tom becomes rich. Tom has violated the

A. business judgment rule.

B. insider trading rule.

C. corporate opportunity doctrine.

D. fairness rule.

16. Robert owns shares in Products, Inc., and suspects that Zach, one of the directors of the company, has been stealing corporate assets. Robert complains to the corporation, but no action is taken. Robert should file a

A. direct suit against Products, Inc.

B. derivative suit against Zach on behalf of Products, Inc.

C. derivative suit against Products, Inc., on his own behalf.

D. direct suit against Zach.

17. Which of the following types of company offers protection for personal liability?

A. Sole proprietorship

B. Limited liability partnership

C. General partnership

D. Term partnership

18. The difference between a limited partnership and a registered limited liability partnership (RLLP) is that

A. all partners have limited liability in a limited partnership, but not in an RLLP.

B. a limited partnership can have secret partners, while an RLLP can’t.

C. all partners have limited liability in an RLLP, but not in a limited partnership.

D. an RLLP can have secret partners, while a limited partnership can’t.

19. Bob is the CEO of Realty, Inc., a company that purchases and develops property for shopping centers. Bob learns that certain real estate, which would be excellent for a shopping center, is about to go up for sale. Bob purchases the property himself without telling anyone at the corporation. Bob has violated the

A. corporate opportunity doctrine.

B. insider trading rule.

C. fairness rule.

D. business judgment rule.

20. Crawford, Inc., wants to acquire the assets of Toxic Waste, Inc., but Toxic Waste won’t sell. Toxic Waste is a publicly held company with widely dispersed share ownership. What technique can Crawford use to accomplish its goal?

A. Takeover bid

B. Merger

C. Consolidation

D. Asset acquisition



Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.


Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.


Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?


Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.


Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.


Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !


Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.