Corporations

Question 1

Which of the following is true of a corporation?

1. Managers elect shareholders who hire directors
2. Shareholders elect directors who hire officers
3. Directors elect managers who hire shareholders
4. Shareholders elect officers who hire directors
5. Managers elect shareholders who hire director

Answer 1

2. Shareholders elect directors who hire officers

Question 2

Which of the following may not be true of an LLC?

1. It is taxed as a corporation
2. It is taxed as a partnership
3. It has perpetual existence
4. It is for a limited term
5. None of the above

Answer 2

5. None of the above

Question 3

When is a partnership liable for what a partner does?

Answer 3

When the partner commits a wrongful act while acting for the partnership

Question 4

When are the members of an LLC personally liable for its debts?

1. When they are shareholders
2. When the LLC is properly formed
3. When the LLC is not-for-profit
4. When the LLC is manager-managed
5. None of the above

Answer 4

5. None of the above

Question 5

Generally speaking, corporate shareholders do not act as ______ for the corporation

Answer 5

agents

Question 6

How are financial rights allocated in a corporation?

Answer 6

According to shares

Question 7

An entity with one type of owner with management rights and unlimited personal liability, and another type of owner with restricted governance rights and limited liability, is a:

Answer 7

Limited partnerships

Question 8

LLCs are created using:

Answer 8

articles of organization

Question 9

Which of the following generally does not have fiduciary duties to the entity in question?

1. A shareholder in a corporation
2. A partner in a general partnership
3. A manager in an LLC
4. A director of a corporation
5. A general partner of a limited partnership

Answer 9

1. A shareholder in a corporation

Question 10

Under State v. Christy Pontiac-GMC, which of the following is not required for a corporation to have criminal intent with respect to a criminal act?

1. the corporation’s management engaged in the criminal act
2. the corporation’s agent was acting within the scope of her employment when engaged in the business that was conducted criminally
3. the corporation’s agent was acting at least in part in furtherance of the corporation’s business interests when engaged in the business that was conducted criminally
4. the agent’s criminal acts were authorized, tolerated or ratified by the corporation’s management
5. the corporation’s agent had authority to act for the corporation with respect to the business that was conducted criminally

Answer 10

1. the corporation’s management engaged in the criminal act