Question 1

Match the most appropriate term to the definition.
-A characteristic unique to a corporation

Accepted Answer

A)  par value
B)  dissolution
C)  personal liability
D)  indefinite life span
E)  partnershipF) sole proprietorshipG) corporationH) limited partnershipI) pooling agreementJ) ratification

Question 2

A(n)  __________is an agreement of two or more to engage in a business or enterprise with shared profit or loss.

Accepted Answer

The answer of A(n)  __________is an agreement of two...

Question 3

Agency can be used in

Accepted Answer

A)   partnerships.
B)   corporations.
C)   sole proprietorships.
D)   All of the above.

Question 4

Inherent authority allows the agent to exceed the authority of the principal

Accepted Answer

A)   when good opportunities arise.
B)   for that which is reasonably necessary to accomplish the object of the agency.
C)   only when specifically granted permission in advance.
D)   None of the above.

Question 5

__________is a corporation that meets all requirements of law for corporate status.

Accepted Answer

The answer of  __________is a corporation that meets all...

Question 6

On dissolution,a partnership requires

Accepted Answer

A)   partners to share losses equally.
B)   limited partners to assist in payment of debt of the partnership.
C)   payment of debts before distribution of assets.
D)   None of the above. C

Question 7

A corporation's legal status

Accepted Answer

A)   ends on the date stated in articles of incorporation unless renewed.
B)   ends on death of the primary shareholder.
C)   has no specific lifespan at its inception.
D)   ends on the date established by the secretary of state when the articles are filed.

Question 8

A corporation always protects the owners from personal liability.

Accepted Answer

A) True 
 B)False  False

Question 9

Agency can be created

Accepted Answer

A)   by express conduct.
B)   by implied conduct.
C)   after the party acts on behalf of another.
D)   All of the above.

Question 10

__________is when one party acts on behalf of another.

Accepted Answer

The answer of  __________is when one party acts on...

Question 11

Match the most appropriate term to the definition.
-Responsibility of owners for debts of business

Accepted Answer

A)  par value
B)  dissolution
C)  personal liability
D)  indefinite life span
E)  partnershipF) sole proprietorshipG) corporationH) limited partnershipI) pooling agreementJ) ratification

Question 12

A business that ends automatically with a change in the only member of ownership is a

Accepted Answer

A)   partnership.
B)   sole proprietorship.
C)   general partnership.
D)   corporation.

Question 13

__________is a corporation that makes good faith attempts to meet the requirements of law for corporate status.

Accepted Answer

The answer of  __________is a corporation that makes good...

Question 14

Limited liability companies are

Accepted Answer

A)   synonymous with limited partnerships.
B)   a form of corporation.
C)   a type of legal entity different from all others.
D)   the same as a general corporation that limits liability of shareholders. B

Question 15

Bankruptcy can be used to create payment arrangements or eliminate debt.

Accepted Answer

A) True 
 B)False

Question 16

On a resolution to dissolve,a corporation

Accepted Answer

A)   may continue to do business for 180 days.
B)   must cease all new business immediately.
C)   must cease all business of any nature immediately.
D)   may continue to do regular business activity until all creditors are paid.

Question 17

__________shareholders are often entitled to higher and more frequent dividends.

Accepted Answer

The answer of  __________shareholders are often entitled to higher...

Question 18

Match the most appropriate term to the definition.
-Ends automatically at the death of one of the owners

Accepted Answer

A)  par value
B)  dissolution
C)  personal liability
D)  indefinite life span
E)  partnershipF) sole proprietorshipG) corporationH) limited partnershipI) pooling agreementJ) ratification

Question 19

A business in which one or more owners is not permitted to have input into the regular operations is a

Accepted Answer

A)   general corporation.
B)   limited partnership.
C)   general partnership.
D)   sole proprietorship.

Question 20

A corporation's life continues indefinitely.

Accepted Answer

A) True 
 B)False

Exam 14: The Law of Business

Match the most appropriate term to the definition. -A characteristic unique to a corporation

Correct AnswerverifiedShow Answer

A(n) __________is an agreement of two or more to engage in a business or enterprise with shared profit or loss.

Correct AnswerverifiedShow Answer

Agency can be used in

Correct AnswerverifiedShow Answer

Inherent authority allows the agent to exceed the authority of the principal

Correct AnswerverifiedShow Answer

__________is a corporation that meets all requirements of law for corporate status.

Correct AnswerverifiedShow Answer

On dissolution,a partnership requires

Correct AnswerverifiedC

A corporation's legal status

Correct AnswerverifiedShow Answer

A corporation always protects the owners from personal liability.

Correct AnswerverifiedFalse

Agency can be created

Correct AnswerverifiedShow Answer

__________is when one party acts on behalf of another.

Correct AnswerverifiedShow Answer

Match the most appropriate term to the definition. -Responsibility of owners for debts of business

Correct AnswerverifiedShow Answer

A business that ends automatically with a change in the only member of ownership is a

Correct AnswerverifiedShow Answer

__________is a corporation that makes good faith attempts to meet the requirements of law for corporate status.

Correct AnswerverifiedShow Answer

Limited liability companies are

Correct AnswerverifiedB

Bankruptcy can be used to create payment arrangements or eliminate debt.

Correct AnswerverifiedShow Answer

On a resolution to dissolve,a corporation

Correct AnswerverifiedShow Answer

__________shareholders are often entitled to higher and more frequent dividends.

Correct AnswerverifiedShow Answer

Match the most appropriate term to the definition. -Ends automatically at the death of one of the owners

Correct AnswerverifiedShow Answer

A business in which one or more owners is not permitted to have input into the regular operations is a

Correct AnswerverifiedShow Answer

A corporation's life continues indefinitely.

Correct AnswerverifiedShow Answer

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C

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False

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B

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