Most limited liability companies are not subject to federal securities regulation.
Much of modern corporate law has been derived from the decisions of the courts of
Delaware.
All corporations contemplating a merger must file notice with the Federal Trade
Commission pursuant to the Hart-Scott-Rodino Act.
A sole proprietor may hire any number of employees.
Partners are jointly liable for all debts and obli- gations of the partnership.
In the event that no designation is made in the articles of incorporation, if there is only
one class of stock authorized, that stock is considered to be common stock.
One advantage to the issuance of equity securi- ties over debt securities is that it
maintains a lower debt-to-equity ratio for the corporation.
Failure to hold regular shareholders’ and directors’ meetings may be a factor taken into
consideration in support of piercing the corporate veil.
In most states, the same number of partners required to approve an amendment to the
partnership agreement must vote to approve the limited liability partnership election.
Partners of a limited liability partnership may be held personally responsible for
partnership obligations incurred due to their own wrong doing.
The—- is an agreement entered into be- tween parties setting forth their intentions with
regard to forming a corporation.
A. prein corporation agreement
B. corporate charter
C. articles of incorporation
D. shareholder agreement
A corporation does not legally exist beyond the boundaries of its state of domicile and
must therefore be granted permission to do business with the proper authorities of other
states.
Only specialists for a particular stock may act as dealers for that stock on the floor of
the exchange when trading securities on a stock exchange.
Partners must contribute an equal amount to the partnership.
Only the employer need sign the employment agreement for it to be valid.
The doctrine of respondeat superiorapplies to the relationship between an employer and
employee and notto the relationship between an employer and an independent
contractor.