Question: Rogue & Sequoia form a joint venture. If a dispute arises, the court applies principles of…
Answer Choices:
a. partnerships
b. joint stock companies
c. cooperatives
d. business trusts
Answer: a. partnerships
Question: Lightning & Mind join to make/market a special limited-edition game. Appropriate entity?
Answer Choices:
a. a joint venture
b. a business trust
c. a syndicate
d. a joint stock company
Answer: a. a joint venture
Question: Olivia is partner in Pacific Traders. If she does not know or ratify certain obligations, she is liable for…
Answer Choices:
a. all obligations, jointly/severally
b. only contractual obligations
c. all obligations, jointly but not severally
d. none of the obligations
Answer: a. all of the obligations, jointly and severally
Question: Orly & Paquito form a joint venture. Orly can participate in management…
Answer Choices:
a. to the extent of her investment
b. to any extent
c. to no extent
d. only if she assumes liability
Answer: b. to any extent
Question: Under most state statutes, Clickology Inc. can have…
Answer Choices:
a. only a one-year, nonrenewable existence
b. perpetual existence
c. a finite but undetermined existence
d. only a one-year, renewable existence
Answer: b. perpetual existence
Question: Luke & Maya form a general partnership. Which is NOT an essential element?
Answer Choices:
a. equal right to management
b. goodwill
c. sharing of profits/losses
d. joint ownership of the business
Answer: b. goodwill
Question: Bay City Merchants has 6 shareholders (4 family). They all agree to operate without formal SH meetings. Under RMBCA, that likely brings…
Answer Choices:
a. piercing of Bay City’s corporate veil
b. a fine
c. imprisonment of shareholders
d. no penalties or sanctions
Answer: d. no penalties or sanctions
Question: Rita & Susan form Trips & Travel, Inc. A corporation is owned by…
Answer Choices:
a. the employees
b. the board of directors
c. the shareholders
d. the officers
Answer: c. the shareholders
Question: Dreem Land & Earthbound transfer property to Financial Managers, who manages it and distributes profits. This is a…
Answer Choices:
a. business trust
b. a corporation
c. a cooperative
d. a joint venture
Answer: a. a business trust
Question: Interstate Paving issues bonds, which are…
Answer Choices:
a. require interest from their owners
b. issued only by businesses
c. referred to as fixed‐income securities
d. feature voting rights
Answer: c. referred to as fixed‐income securities
Question: Harry & Ilene want to form “Journeys Inc.” to avoid corporate-level tax. Choose…
Answer Choices:
a. a close corporation
b. an S corporation
c. a private corporation
d. an alien corporation
Answer: b. an S corporation
Question: Darin is a limited partner. The firm cannot pay debts. Darin is liable…
Answer Choices:
a. to the full extent
b. to the extent of capital contribution
c. in proportion to partners
d. to no extent
Answer: b. to the extent of capital contribution
Question: Oil Reserves & Petro form a joint venture and later sue. The court applies the same principles as…
Answer Choices:
a. corporations
b. limited liability companies
c. partnerships
d. sole proprietorships
Answer: c. partnerships
Question: Cherry Creek is an LP. A limited partner loses limited liability if he/she…
Answer Choices:
a. participates in management
b. votes to sell/dissolve
c. does not participate in management
d. invests in a declined project
Answer: a. participates in management
Question: Phone Apps, LLC has a dispute not covered by its operating agreement. It’s governed by…
Answer Choices:
a. the applicable state LLC statute
b. partnership law
c. federal LLC statutes
d. the Uniform LLC Act
Answer: a. the applicable state LLC statute
Question: Leon, Michael, Nolan, and O’Neill form an investment group to buy a pro basketball franchise— known as…
Answer Choices:
a. a joint venture
b. a joint stock company
c. a business trust
d. a syndicate
Answer: d. a syndicate