Reteach
Theȱteacherȱwillȱhaveȱtoȱdetermineȱifȱtheȱstudentsȱareȱholdingȱupȱtheȱcorrectȱslipȱofȱ
paper.ȱ
Enrichment Activity
Lessonȱ28—2ȱ
Quiz
ȱ
11.ȱItȱisȱforȱjustȱsuchȱaȱsituationȱasȱtheȱoneȱaffectingȱAltitude,ȱthatȱtheȱSuperfundȱ
wasȱcreated.ȱAȱsimilarȱevacuation,ȱrelocation,ȱandȱultimateȱcleanupȱwasȱeffectuȬ
Practice Activity
1.ȱCertainly.ȱAsȱmentionedȱinȱtheȱtext,ȱsomeȱofȱtheȱpotentiallyȱresponsibleȱpartiesȱ
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Reteach
Enrichment Activity
ȱ
ANSWERS TO TEST QUESTIONS
ȱ
SECTIONȱIȱ
SECTIONȱIIȱ
ȱ
ȱ
SECTIONȱIIIȱ
20.ȱAnȱLLC.ȱAllȱ125ȱofȱherȱfriendsȱandȱfamilyȱcouldȱbeȱstockholders.ȱYet,ȱsheȱcouldȱ
Chapter 28 Other Business Forms and Environmental Responsibility 6-57
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
ȱ
TESTȱAȱ
UNITȱ6ȱ
CHAPTERSȱ
26–28ȱ
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ
heȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱt
Columnȱ1ȱ
A.ȱlimitedȱliabilityȱ
corporationȱ(LLC)ȱ
ȱ
B.ȱarticlesȱofȱincorȬ
porationȱ
ȱ
C.ȱarticlesȱofȱorganiȬ
zationȱ
ȱ
D.ȱbylawsȱ
ȱ
E.ȱcapitalȱstockȱ
ȱ
F.ȱcorporateȱȱ
ȱresponsibilityȱ
ȱ
G.ȱpartnershipȱ
ȱ
H.ȱtradingȱpartnerȬ
shipȱ
ȱ
I.ȱCleanȱAirȱActȱȱ
ȱ
J.ȱlimitedȱliabilityȱ
partnershipȱ(LLP)ȱ
ȱ
K.ȱpartnershipȱ
agreementȱ
ȱ
L.ȱSȱcorporationȱ
ȱ
M.ȱsoleȱproprietorȬ
shipȱ
ȱ
Columnȱ2ȱ
1.ȱAȱformȱofȱbusinessȱorganizationȱwhereȱoneȱ
individualȱhasȱunlimitedȱcontrolȱasȱwellȱasȱ
unlimitedȱpersonalȱresponsibility.ȱ
2.ȱMeansȱthatȱaȱcorporationȱisȱtoȱbeȱheldȱacȬ
countableȱforȱfulfillingȱitsȱdutiesȱnotȱonlyȱtoȱ
itsȱshareholdersȱbutȱtoȱsociety.ȱȱ
3.ȱAȱstatementȱofȱtheȱtermsȱandȱconditionsȱ
thatȱpartnersȱagreeȱonȱtoȱguideȱthemȱinȱ
managingȱtheirȱbusiness.ȱ
4.ȱTheȱapplicationȱforȱaȱcorporateȱcharterȱ
submittedȱtoȱaȱstateȱgovernmentȱbyȱaȱbusiȬ
ness.ȱ
5.ȱTheȱrulesȱandȱregulationsȱforȱtheȱinternalȱ
managementȱofȱaȱcorporation’sȱaffairs.ȱ
6.ȱCanȱonlyȱbeȱincreasedȱwithȱtheȱapprovalȱofȱȱ
theȱshareholders.ȱ
7.ȱAȱformȱofȱbusinessȱorganizationȱunderȱ
whichȱtheȱearningsȱareȱtreatedȱtheȱsameȱasȱ
aȱgainȱ(orȱloss)ȱfromȱaȱpartnershipȱandȱ
taxedȱonlyȱatȱtheȱindividualȱowner’sȱlevel.ȱ
8.ȱAȱstatuteȱthatȱofferedȱresearchȱaidȱandȱ
pushedȱdevelopmentȱofȱstateȬbasedȱcontrolȱ
agenciesȱinȱanȱattemptȱtoȱstopȱcompaniesȱ
fromȱpollutingȱtheȱair.ȱ
9.ȱAnȱassociationȱofȱtwoȱorȱmoreȱpersonsȱtoȱ
carryȱon,ȱasȱcoȬowners,ȱaȱbusinessȱforȱprofȬ
it.ȱ
Answers
ȱ1.ȱȱ ȱ
ȱ
ȱ
ȱ2.ȱȱ ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ
ȱ4.ȱȱ ȱ
ȱ
ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ7.ȱȱȱ
ȱ
ȱ
ȱ8.ȱȱ ȱ
ȱ
ȱ
ȱ
ȱ9.ȱȱ ȱ
ȱ
ȱ
10.ȱȱ ȱ
Chapter 28 Other Business Forms and Environmental Responsibility
6-58
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
11.ȱThereȱareȱnoȱparticularȱlegalȱrequirementsȱforȱorganizingȱaȱsoleȱ
proprietorship.ȱ
12.ȱPartnershipsȱmayȱbeȱclassifiedȱaccordingȱtoȱtheirȱpurposeȱandȱtheȱ
extentȱofȱtheȱliabilityȱofȱtheȱpartners.ȱ
13.ȱAnȱemphasisȱonȱenvironmentalȱprotectionȱhasȱbeenȱpartȱofȱtheȱ
nationalȱagendaȱinȱtheȱUnitedȱStatesȱsinceȱtheȱfoundingȱofȱtheȱ
country.ȱ
14.ȱWhenȱaȱpartnerȱcommitsȱaȱtortȱwhileȱactingȱwithinȱtheȱordinaryȱ
courseȱofȱtheȱbusiness,ȱonlyȱthatȱpartnerȱisȱliable.ȱ
15.ȱBecauseȱaȱcorporationȱhasȱlimitedȱliability,ȱtheȱindividualȱstockȬ
holdersȱtypicallyȱstandȱtoȱloseȱonlyȱtheȱamountȱtheyȱhaveȱinvested.ȱ
16.ȱIfȱtheȱownerȱofȱaȱcorporationȱdies,ȱtheȱpresentȱcorporationȱwouldȱ
beȱdissolvedȱandȱaȱnewȱentityȱformed.ȱ
17.ȱTheȱSuperfundȱmayȱbeȱutilizedȱtoȱpayȱforȱtheȱcleanupȱofȱtoxicȱ
wasteȱdumps.ȱ
18.ȱCorporateȱofficersȱareȱlegallyȱliableȱtoȱtheȱcorporationȱforȱwillfulȱorȱ
negligentȱactsȱthatȱcauseȱlossȱtoȱit.ȱ
19.ȱAnȱLLCȱcannotȱhaveȱmoreȱthanȱ100ȱmembers.ȱ
20.ȱTheȱCleanȱWaterȱActȱinitiallyȱwasȱanȱattemptȱtoȱcontrolȱpollutantsȱ
inȱgroundȱwater..ȱ
21.ȱInȱaȱlimitedȱpartnership,ȱatȱleastȱoneȱpartnerȱmustȱbeȱaȱgeneralȱ
partner,ȱwithȱunlimitedȱliability.ȱ
ȱ
ȱ11.ȱ_____ȱ
ȱ
ȱȱ12.ȱȱ ȱ
ȱ
ȱȱ13.ȱȱ ȱ
ȱ
ȱȱ14.ȱȱ ȱ
ȱ
ȱȱ15.ȱȱ ȱ
ȱ
ȱȱ16.ȱȱ ȱ
ȱ ȱȱȱ
ȱ17.ȱȱ ȱ
ȱ
ȱȱ18.ȱȱ ȱ
ȱ
ȱȱ19.ȱȱ ȱ
ȱȱ20.ȱȱ ȱ
ȱȱ21.ȱȱ ȱ
ȱ
SECTION III—APPLY LEGAL PRACTICES
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
Answers
22.ȱȱ Theȱtypeȱofȱpartnershipȱthatȱbuysȱandȱsellsȱgoodsȱandȱservicesȱ
commerciallyȱisȱaȱ(a)ȱtradingȱpartnership,ȱ(b)ȱnonȬtradingȱpartȬ
nership,ȱ(c)ȱspecialȱpartnership,ȱ(d)ȱnoneȱofȱtheȱaboveȱ
21._______ȱ
23.ȱManyȱcourtsȱasȱwellȱasȱtheȱIRSȱtreatȱjointȱventuresȱtheȱsameȱasȱ
(a)ȱgeneralȱpartnerships,ȱ(b)ȱlimitedȱpartnerships,ȱ(c)ȱCȱcorporaȬ
tions,ȱ(d)ȱnoneȱofȱtheseȱ
22._______ȱ
Unit 6 Tests Chapters 26–28 6-59
Answers
25.ȱȱ AccordingȱtoȱformerȱheadȱofȱtheȱDepartmentȱofȱEnergyȱSpencerȱ
Abraham,ȱwhatȱisȱtheȱnumberȬoneȱmythȱconcerningȱenergyȱinȱ
theȱUnitedȱStates?ȱ(a)ȱweȱdon’tȱhaveȱenoughȱoilȱtoȱsupportȱourȱ
use,ȱ(b)ȱtheȱideaȱthatȱweȱcanȱachieveȱenergyȱindependence,ȱ(c)ȱ
coalȱburnsȱcleanerȱthanȱnuclearȱpower,ȱ(d)ȱgasȱpricesȱareȱartifiȬ
ciallyȱlowȱ
24._______ȱ
26.ȱȱ Inȱmostȱstates,ȱtoȱcreateȱaȱcorporation,ȱ(a)ȱanȱapplicationȱforȱinȬ
corporationȱmustȱbeȱfiledȱtoȱtheȱproperȱstateȱofficial,ȱ(b)ȱtheȱ
promotersȱmustȱbindȱtheȱorganizationȱthatȱisȱtoȱbecomeȱaȱcorpoȬ
ration,ȱ(c)ȱallȱofȱtheȱincorporatorsȱmustȱhaveȱlegalȱcapacity,ȱ(d)ȱ
allȱofȱtheseȱ
25._______ȱ
27.ȱMoneyȱtoȱbuyȱequipment,ȱsupplies,ȱandȱinventory;ȱtoȱhireȱlabor;ȱ
andȱtoȱpayȱotherȱexpensesȱofȱaȱcorporationȱcomesȱfromȱ(a)ȱdonaȬ
tionsȱreceived,ȱ(b)ȱfundȱraisers,ȱ(c)ȱtheȱcompany’sȱearningsȱandȱ
capitalization,ȱ(d)ȱtheȱoriginalȱincorporatorsȱ
26._______ȱ
28.ȱȱ ThisȱActȱestablishedȱtheȱCouncilȱonȱEnvironmentalȱQuality,ȱanȱ
administrativeȱagencyȱthatȱformsȱfederalȱenvironmentalȱpolicy.ȱ
(a)ȱCleanȱAirȱAct,ȱ(b)ȱCleanȱWaterȱAct,ȱ(c)ȱNationalȱEnvironȬ
mentalȱPolicyȱAct,ȱ(d)ȱSuperfundȱActȱ
27._______ȱ
29.ȱȱ Responsibilityȱforȱpayingȱforȱtoxicȱwasteȱcleanupȱbyȱlawȱcanȱfallȱ
onȱ(a)ȱlocalȱresidents,ȱ(b)ȱanyȱpartyȱwhoȱdisposedȱwasteȱatȱtheȱ
site,ȱ(c)ȱanyȱpreviousȱorȱcurrentȱownerȱofȱtheȱtoxicȱwasteȱsite,ȱ(d)ȱ
bothȱbȱandȱcȱ
28._______ȱ
30.ȱWhichȱofȱtheȱfollowingȱwouldȱbeȱrequirementsȱwithȱwhichȱaȱ
corporationȱwouldȱhaveȱtoȱcomplyȱtoȱbeȱeligibleȱforȱSȱcorporaȬ
tionȱstatusȱ(a)ȱhaveȱtwoȱorȱmoreȱclassesȱofȱstock,ȱ(b)ȱallowȱanȱ
unlimitedȱnumberȱofȱshareholders,ȱ(c)ȱallowȱforeignȱresidentsȱtoȱ
beȱshareholders,ȱ(d)ȱnoneȱofȱtheseȱ
29._______ȱ
31.ȱȱ Whichȱofȱtheȱfollowingȱisȱnotȱconsideredȱaȱprincipalȱformȱofȱ
businessȱorganization?ȱ(a)ȱsoleȱproprietorship,ȱ(b)ȱlimitedȱpartȬ
30._______ȱ
ȱ
SECTION IV—DEMONSTRATE LEGAL IDEAS
32.ȱListȱaȱgeneralȱpartner’sȱrightsȱandȱdutiesȱinȱaȱpartnership.ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
33ȱListȱatȱleastȱeightȱfunctionsȱthatȱaȱcorporationȱhasȱtheȱpowerȱtoȱdoȱinȱitsȱownȱ
name.
Unit 6 Tests Chapters 26–28 6-61
ȱUNITȱ6ȱ
CHAPTERSȱ
26–28ȱ
ȱ
TESTȱBȱ
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
1.ȱTheȱKyotoȱAccords,ȱanȱinternationalȱeffortȱtoȱreduceȱgreenhouseȱ
gases,ȱwasȱratifiedȱimmediatelyȱbyȱbothȱtheȱHouseȱandȱtheȱSenate.ȱ
2.ȱEvenȱifȱgeneralȱpartnersȱagreeȱtoȱaȱdifferentȱdistributionȱofȱresponȬ
sibilityȱwithinȱtheȱpartnership,ȱeachȱremainsȱfullyȱliableȱwithoutȱ
limitȱtoȱoutsideȱcreditorsȱforȱdebtsȱowedȱbyȱtheȱfirm.ȱ
3.ȱTheȱtermsȱandȱconditionsȱthatȱcompriseȱaȱpartnershipȱagreementȱ
mustȱalwaysȱbeȱinȱwriting.ȱ
4.ȱDeathȱofȱanyȱpartnerȱdissolvesȱtheȱpartnership.ȱ
5.ȱInȱtheȱeyesȱofȱtheȱlaw,ȱallȱpartnersȱareȱassumedȱtoȱhaveȱreceivedȱ
anyȱpaymentsȱtoȱtheȱfirmȱevenȱifȱtheȱpartnerȱwhoȱactuallyȱreceivedȱ
theȱmoneyȱdisappears.ȱ
6.ȱForeignȱhydrocarbonȱfuelsȱaccountȱforȱnineȱoutȱofȱeveryȱtenȱunitsȱ
ofȱenergyȱthatȱsustainȱtheȱAmericanȱlifestyle.ȱ
8.ȱTheȱonlyȱformȱofȱbusinessȱorganizationȱthatȱmayȱbeȱgrantedȱtheȱ
powerȱofȱperpetualȱsuccessionȱisȱtheȱsoleȱproprietorship.ȱ
9.ȱArticlesȱofȱincorporationȱmustȱbeȱfiledȱinȱtheȱappropriateȱstateȱtoȱ
10.ȱExamplesȱofȱpublicȱcorporationsȱareȱincorporatedȱcities,ȱstateȱhosȬ
pitals,ȱandȱstateȱuniversities.ȱ
ȱ1.ȱȱ ȱ
ȱ2.ȱȱ ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ4.ȱȱ ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ
ȱ8.ȱȱ ȱ
ȱ
10.ȱȱ ȱ
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
Answers
11.ȱGenerally,ȱwhenȱallȱofȱanȱindividualȱowner’sȱȱprivateȱpropertyȱasȱ
wellȱasȱallȱofȱherȱorȱhisȱbusiness’ȱpropertyȱmayȱbeȱseizedȱtoȱpayȱ
damagesȱawardedȱbyȱtheȱcourtsȱasȱaȱresultȱofȱaȱtortȱlawsuitȱ
againstȱtheȱbusiness,ȱtheȱbusinessȱisȱaȱ(a)ȱcorporation,ȱ(b)ȱpartȬ
nership,ȱ(c)ȱsoleȱproprietorship,ȱ(d)ȱbȱorȱcȱ
11._______ȱ
6-62 Unit 6 Tests Chapters 26–28
12.ȱAccordingȱtoȱtheȱtext,ȱtoday’sȱenergyȱproblemȱisȱmainlyȱcausedȱ
byȱ(a)ȱineffectiveȱpastȱgovernmentalȱresponses,ȱ(b)ȱlackȱofȱtrustȱ
inȱnuclearȱpower,ȱ(c)ȱincreasingȱappetiteȱofȱaȱgrowingȱpopulaȬ
tionȱforȱanȱeverȬdiminishingȱsupplyȱofȱenergyȱresources,ȱ(d)ȱ
noneȱofȱtheȱaboveȱ
12._______ȱ
13.ȱȱ Aȱpartnerȱwhoȱinvestsȱmoreȱcapital,ȱbringsȱinȱmoreȱbusiness,ȱorȱ
worksȱlongerȱandȱharderȱthanȱhisȱorȱherȱassociatesȱisȱ(a)ȱentitledȱ
toȱextraȱpay,ȱ(b)ȱentitledȱtoȱaȱlargerȱshareȱofȱtheȱprofits,ȱ(c)ȱeitherȱ
aȱorȱbȱonlyȱifȱallȱotherȱpartnersȱagree,ȱ(d)ȱbothȱaȱandȱbȱ
13._______ȱ
14.ȱȱ Aȱpartnerȱdoesȱnotȱhaveȱtheȱauthorityȱtoȱ(a)ȱdischargeȱaȱpersonalȱ
debtȱbyȱagreeingȱtoȱoffsetȱitȱagainstȱaȱdebtȱowedȱtoȱtheȱpartnerȬ
ship,ȱ(b)ȱcompromiseȱfirmȱclaimsȱagainstȱdebtors,ȱsettlingȱforȱ
lessȱthanȱisȱdue,ȱ(c)ȱadjustȱdebtsȱofȱtheȱfirmȱbyȱagreementȱwithȱ
creditors,ȱ(d)ȱnoneȱofȱtheseȱ
14._______ȱ
15.ȱIndividualsȱcanȱtakeȱstepsȱtoȱdecreaseȱtheirȱdrawdownȱonȱourȱ
energyȱresourcesȱbyȱ(a)ȱbuyingȱenergyȱefficientȱdwellings,ȱ(b)ȱ
makingȱchangesȱtoȱtheirȱoldȱhomesȱtoȱmakeȱthemȱmoreȱenergyȱ
efficient,ȱ(c)ȱbuyingȱfuelȬefficientȱvehicles,ȱ(d)ȱallȱofȱtheseȱ
15._______ȱ
16.ȱȱ Creditorsȱmayȱforceȱdissolutionȱofȱaȱcorporationȱbecauseȱofȱȱȱȱȱȱ
(a)ȱbankruptcy,ȱ(b)ȱconsolidation,ȱ(c)ȱaȱmerger,ȱ(d)ȱallȱofȱtheseȱ
16._______ȱ
17.ȱAdvantagesȱofȱaȱCȱcorporationȱwouldȱnotȱincludeȱ(a)ȱperpetualȱ
life,ȱ(b)ȱprofessionalȱmanagement,ȱ(c)ȱtaxȱstatus,ȱ(d)ȱallȱofȱtheseȱ
17._______ȱ
18.ȱRightsȱofȱtheȱshareholderȱwouldȱnotȱincludeȱtheȱrightȱtoȱ(a)ȱaȱ
proportionateȱshareȱofȱtheȱprofits,ȱ(b)ȱinspectȱcorporateȱbooksȱofȱ
account,ȱ(c)ȱparticipateȱdirectlyȱinȱmanagementȱofȱtheȱcorporaȬ
tion,ȱ(d)ȱshareȱinȱtheȱdistributionȱofȱtheȱcapitalȱifȱtheȱcorporationȱ
isȱdissolvedȱ
18._______ȱ
19.ȱWhichȱofȱtheȱfollowingȱbusinessȱentitiesȱhasȱtoȱpayȱtaxesȱonȱitsȱ
earnings?ȱ(a)ȱsoleȱproprietorship,ȱ(b)ȱLLC,ȱ(c)ȱpartnership,ȱ(d)ȱ
noneȱofȱtheȱbusinessȱentitiesȱlistedȱaboveȱhaveȱtoȱpayȱtaxesȱonȱitsȱ
earningsȱ
19._______ȱ
20.ȱArticlesȱofȱincorporationȱgenerallyȱcontainȱtheȱfollowingȱeleȬ
ments,ȱ(a)ȱname,ȱduration,ȱandȱpurposeȱofȱtheȱcorporation,ȱ(b)ȱ
numberȱofȱshares,ȱlocation,ȱandȱnumberȱofȱdirectorsȱofȱtheȱcorȬ
poration,ȱ(c)ȱallȱofȱtheȱabove,ȱ(d)ȱnoneȱofȱtheȱaboveȱ
20._______ȱ
Unit 6 Tests Chapters 26–28 6-63
SECTION III—APPLY LEGAL PRACTICES
Directions:ȱInȱtheȱspacesȱprovided,ȱwriteȱtheȱword(s)ȱneededȱtoȱmakeȱtheȱsentenceȱaȱ
correctȱstatement.ȱ(directors,ȱdoubleȱtaxation,ȱlimitedȱliabilityȱpartnershipȱ(LLP),ȱ
dividends,ȱpartnershipȱatȱwill,ȱpreemptiveȱright,ȱSuperfund,ȱsilentȱpartner,ȱoilȱemȬ
bargo,ȱtenancyȱinȱpartnership)ȱ
ȱȱ Answersȱ
21.ȱAȱgeneralȱpartnerȱthatȱmayȱbeȱknownȱtoȱtheȱpublicȱasȱaȱpartnerȱ
21._______ȱ
22.ȱAȱpartnerȱmayȱwithdrawȱatȱanyȱtimeȱwithoutȱliabilityȱtoȱassociȬ
atesȱinȱa(n)ȱ__________.ȱ
22._______ȱ
23.ȱȱ Allȱcashȱandȱotherȱpropertyȱofȱaȱpartnershipȱisȱheldȱinȱaȱspecialȱ
formȱofȱcoȬownershipȱcalledȱ__________.ȱ
23._______ȱ
24.ȱTheȱmonetaryȱreserveȱavailableȱasȱaȱfinalȱresortȱforȱfinancingȱ
theȱcleanupȱofȱtoxicȱwasteȱdumpsȱisȱknownȱasȱȱtheȱ__________.ȱ
24._______ȱ
25.ȱThoseȱwhoȱsetȱmajorȱgoals,ȱdetermineȱbasicȱpolicies,ȱandȱareȱ
responsibleȱforȱoverallȱdirectionȱofȱtheȱcorporationȱareȱtheȱ
__________.ȱ
25._______ȱ
26.ȱȱ Theȱrightȱofȱshareholdersȱtoȱpurchaseȱadditionalȱsharesȱfromȱaȱ
newȱstockȱissueȱtoȱmaintainȱtheirȱpreviousȱpercentageȱofȱownȬ
ershipȱinterestȱinȱaȱcorporationȱisȱcalledȱtheȱ__________.ȱ
26._______ȱ
27.ȱSubchapterȱCȱofȱtheȱInternalȱRevenueȱCodeȱsubjectsȱcorporaȬ
tionsȱtoȱ__________.ȱ
27._______ȱ
28.ȱBecauseȱexistingȱbusinessȱentities,ȱespeciallyȱpartnershipsȱconȬ
structedȱforȱprofessionals,ȱfoundȱdifficultyȱinȱconvertingȱtoȱanȱ
LLCȱform,ȱanotherȱformȱofȱbusinessȱorganizationȱwasȱformedȱ
calledȱtheȱ__________.ȱ
28._______ȱ
29.ȱGenerally,ȱ__________ȱareȱdistributionsȱofȱcorporateȱearningsȱtoȱ
shareholders.ȱȱ
29._______ȱ
30.ȱTheȱfirstȱenergyȱcrisisȱinȱtheȱUnitedȱStatesȱoccurredȱinȱ1973ȱandȱ
wasȱtheȱresultȱofȱanȱ__________ȱbyȱOPEC.ȱ
30._______ȱ
ȱ
SECTION IV—DEMONSTRATE LEGAL IDEAS
31.ȱListȱatȱleastȱfiveȱelementsȱgenerallyȱcontainedȱinȱtheȱarticlesȱofȱincorporation.ȱ
ȱ
ȱ
ȱ
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32.ȱListȱandȱexplainȱtheȱfunctionȱofȱeachȱofȱtheȱthreeȱmajorȱstatutesȱthatȱhaveȱbeenȱ
utilizedȱinȱtheȱUnitedȱStates’ȱeffortsȱtoȱcontrolȱpollution.ȱȱ
ANSWERS TO UNIT 6 TEST A
SECTION I
SECTION II
SECTION III
SECTION IV
31.ȱAnswersȱmayȱvary,ȱbutȱshouldȱincludeȱtheȱfollowingȱinformation:ȱDUTIES:ȱEachȱ
partnerȱmustȱcomplyȱwithȱtheȱpartnershipȱagreementȱandȱisȱlegallyȱboundȱtoȱactȱ
withȱtheȱhighestȱintegrityȱandȱgoodȱfaithȱinȱdealingȱwithȱtheȱotherȱpartnerȱorȱ
32.ȱAnswersȱwillȱvary,ȱbutȱshouldȱincludeȱtheȱfollowingȱinformation:ȱ(1)ȱmakeȱconȬ
tracts,ȱ(2)ȱborrowȱmoneyȱandȱincurȱotherȱliabilities,ȱ(3)ȱlendȱmoneyȱandȱacquireȱ
assets,ȱincludingȱallȱformsȱofȱrealȱandȱpersonalȱproperty,ȱ(4)ȱmake,ȱindorse,ȱandȱ
acceptȱcommercialȱpaper,ȱ(5)ȱissueȱvariousȱtypesȱofȱstockȱandȱbonds,ȱ(6)ȱmortȬ
ANSWERS TO UNIT 6 TEST B
SECTION I
SECTION II
SECTION III
SECTION IV
31.ȱAnswersȱmayȱvaryȱbutȱshouldȱincludeȱtheȱfollowingȱinformation:ȱ(1)ȱnameȱofȱ
theȱcorporation,ȱ(2)ȱdurationȱ(indefiniteȱorȱperpetual),ȱ(3)ȱpurpose,ȱorȱpurposes,ȱ
porator,ȱ(8)ȱanyȱotherȱprovisionȱconsistentȱwithȱtheȱlaw.ȱ
32.ȱ(1)ȱCleanȱAirȱActȱ(CAA):ȱPassedȱinȱ1963,ȱitȱwasȱoneȱofȱtheȱfirstȱattemptsȱtoȱconȬ
trolȱairȱpollution,ȱand,ȱafterȱsignificantȱamendment,ȱproducedȱNationalȱAirȱ
QualityȱStandardsȱthatȱareȱcurrentlyȱbeingȱsomewhatȱeffectivelyȱutilizedȱtoȱconȬ