An organizer is the individual that incorporates a business.
There is no limit on the number of members in a Nonprofit Corporation.
The most common committee created from board of directors is an executive
committee, which typically is given the power to act when the board of directors is not
in session.
General shareholders will be paid dividends before Preferred shareholders receive them
from a corporation.
A partner is under no duty to maintain the secrets of the business.
The Employee Polygraph Protection Act makes it illegal for an employer to require a
prospective employee to take a lie detector test.
The owner of a sole proprietorship assumes personal liability for the actions of the
business.
What is the term for a publicly held corporation a raider attempts to take over through
tender offer?
A.The target
B.The enemy
C.The bylaw
D.The liquidation
Directors and officers owe what kind of duty to the corporation?
A.Fiduciary duty based on trust
B.Duty to make a profit
C.A duty to be innovative
D.A duty to be generous
What form of partnership prevents the partners from being personally liable for the
actions of the business?
A.LLP
B.Incorporation
C.International Partnership
D.Domestic Partnership
The Securities Act of 1933 and the Securities Exchange Act of 1934 are what kind of
law?
A.Federal statutes
B.State statutes
C.Administrative rules
D.Common Law decisions
For a principal to be directly liable in a Tort case, the following individual must be at
fault for the injury to the victim:
A.The principal
B.The agent
C.The subagent
D.The incorporator
In order to have standing in a federal antitrust case what must a potential plaintiff have?
A.Direct injury resulting from the antitrust violation
B.Indirect injury resulting from the antitrust violation
C.An injury that crosses international boundaries
D.An injury that has caused a plaintiff to file for bankruptcy protection
What section of the UCC mandates that a bank signature must appear on a certified
check?
A.1-103
B.3-409
C.3-223
D.6-105
Mr. Green enters into a partnership with IT Doctors LLP. Mr. Green’s capital investment
into the business is $10,000. Shortly after joining the new business a client sues the IT
Doctors LLP and wins a judgment of $750,000. How much is Mr. Green liable for?
A.$10,000
B.$100,000
C.$750,000
D.$0
What is the term for when controlling shareholders pay themselves high salaries while
not employing or not paying out dividends to minority shareholders?
A.Quid pro quo
B.Squeeze-out
C.Collateral
D.Liquidity
What is the nature of the principal if a third party knows that the agent is acting for the
principal and also is aware of the principal’s identity?
A.Unidentified
B.Nonexistent
C.Disclosed
D.Undisclosed
Typically a principal is not held liable for the actions of a nonemployee agent, but an
exception to this general rule is:
A.If the principal profits more than $100 by the nonemployee agent’s actions
B.The principal’s hiring of a dangerously incompetent nonemployee agent
C.The principal filing a Notice of Danger
D.The principal notifying an incorporator of the independence of a nonemployee agent
How long does it take before a certificate of dissociation is effective to prevent liability
as a partnership is winding down?
A.90 days
B.180 days
C.365 days
D.30 days
Congress enacted the Freedom of Information Act (FOIA) to enable private citizens to
obtain access to documents in the government’s possession.