Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 20 Assessment Answers
Matching Key Terms
1. g 6. a
2. d 7. j
True/False Quiz
11. F 19. T
12. T 20. F
Discussion Questions
27. Advantages to organizing as a sole proprietorship include: (a) ease of formation; (b) the owner
28. Advantages to organizing as a partnership include: (a) each partner has the right to share in the
29. In a limited partnership, the limited partner(s) is provided with limited liability. However, the
30. While it is the shareholders who own the corporation, they do not directly manage the activities
31. The duty of loyalty means that a director has a legal and ethical obligation to administer to the
Thinking Critically About the Law
33. The law should allow persons who face unlimited liability to purchase insurance to protect them
35. Most students would agree that corporations should have freedom of speech, freedom from
Case Questions
37a. Y
38a. Y
39a. Y
Case Analysis
40. Principle of law: The law assigns responsibility for corporate obligations to shareholders only
41. Principle of law: Courts have granted corporations and other organizations similar
42. Principle of law: Each partner has the right to share in the profits of the business.
Legal Research
43. Advantages to organizing as a sole proprietorship include: (a) the business is easy to form, (b)
44. The owner of a sole proprietorship pays income taxes on earned profits at his or her personal
BONUS ACTIVITIES
Divide the class into small groups. Hypothesize that each group wants to form its own
