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Owners of an LLC are called members.
A bank will be liable if it charges a customer for a check that is postdated and the bank
was given prior notice of the postdate.
Doing intrastate business without filing with the appropriate state office will likely
subject a business to a fine.
The FACT Act was a 2003 amendment to the Fair Credit Reporting Act that created
protections for individuals that were the victims of identity theft.
Partners in a partnership cannot turn over sole authority to one partner to run the
business.
Tom Smith is hired as an agent of Lakes Computer System. As part of the agency
responsibilities Tom is to wire offices for clients in the country of Israel. Prior to his
leaving war breaks out and the U.S. government post a ban on travel to Israel. What is
the status of the agency of Tom Smith?
A.It is probably terminated by operation of law.
B.It is terminated by the act of the parties.
C.It is terminated under international law.
D.It is terminated under religious law.
What agency regulates underground waste disposal units in the United States?
A.EPA
B.IRS
C.SEC
D.FTC
If a shareholder is successful in a derivative suit then the shareholder is entitled to have
its attorney fees paid by?
A.The Corporation
B.The Secretary of State
C.The Incorporator
D.The Arbitrator
A clause in a contract that states that a promoter of a contract will cease to be liable
under the contract once a corporation has adopted it, is called:
A.An automatic novation clause
B.An automatic agency clause
C.An incorporation clause
D.A bylaws clause
Mr. Blue has invested in SuperMart Inc. Mr. Blue purchased $5000 worth of shares or
3% equity in the company. Shortly after investing SuperMart Inc. is found guilty of
various civil wrongs and a judgment is entered in against the company for 3.1 million
dollars. How much liability will Mr. Blue have?
A.$5000 will be the limit of his liability
B.$93,000 or 3% of the value of the judgment
C.$0 Since Mr. Blue was not a managing officer
D.$100,000 which is statutory minimum for investor liability
In order to prove a violation of monopoly under the Sherman Act, the offending person
or company must have done what?
A.Had the intent to monopolize
B.Profited by the actions in question
C.Violated criminal statutes in at least one state
D.Engaged in civil fraud during the course of business
Which of the following is true about the Williams Act?
A.It regulates tender offers only when the bidder intends to hold at least 2 percent of the
subject company's shares.
B.It requires bidders to solicit shares from at least 100 shareholders.
C.It does not permit tendering shareholders to withdraw their tendered shares.
D.The aim of the Williams Act is to protect investors and to give the bidder and the
subject company equal opportunities to present their cases to the shareholder.
Administrative agencies are what kind of bodies?
A.Commercial
B.Government
C.International
D.Corporate
Jim and Sarah establish a partnership business. Sarah ends up doing all the work related
to the business even though they had agreed to split the labor. Jim may be in breach of
his duty to what?
A.Duty to Serve
B.Duty to Have No Adverse Interest
C.Duty of Care
D.Duty to Make Profit
A sole proprietorship lasts for how long if it continues to run unabated?
A.For 100 years
B.10 years with an option to renew for another 10 years
C.Till the death of the owner
D.30 years then the business has to be reformed
Which of the following business forms means personal liability for the owner of the
business?
A.Sole proprietorship
B.LLC
C.Corporation
D.LLP
