1.Partners have a fiduciary relationship with each other.


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1.Partners have a fiduciary relationship with each other. Accordingly, a partner A. May take advantage of a business opportunity within the scope of the partnership enterprise if the partnership agreement will terminate before the benefit will be received. B. May engage in a business that competes with the partnership if it is operated with his/her own resources. C. Must exercise a degree of care and skill as a professional. D. May not earn a secret profit in dealings with the partnership or partners. 2. Which of the following documents would most likely contain specific rules for the management of a business corporation? A. Bylaws. B. Articles of incorporation. C. Certificate of authority. D. Shareholders’ agreement. 3. A general partner will not be personally liable for which of the following acts or transactions? A. A personal mortgage loan obtained by one of the other partners on his/her residence to which that partner, without authority, signed the partnership name on the note. B. The gross negligence of one of the partnership ’ s employees while carrying out the partnership business. C. A contract entered into by the partnership in which the other partners agree among themselves to hold the general partner harmless. D. A contract entered into by the majority of the other partners but to which the general partner objects. 4. X brought in two friends, Y and Z, to mass produce and sell posters of Asia throughout the US. They started the business in Orlando where Y and Z each put in an initial capital contribution of $160,000 each. X put in $10,000. They are not looking for any outside capital because they have ways to obtain any additional capital they may need. They each will manage the business. Which form of business organization should they form? A. A limited partnership with Y and Z as the limited partners to protect their larger investments. B. A limited partnership with all three being protected as limited partners. C. A general partnership. D. A corporation. 5. In general, which of the following must be contained in Articles of Incorporation? A. Names of the initial officers and their terms of office. B. Classes of stock authorized for issuance. C. Names of states in which the corporation will be doing business. D. Name of the state in which the corporation will maintain its principal place of business 6. Which of the following Statement is correct? A. Corporations may not acquire their own shares without a two-thirds vote by the shareholders. B. Corporations can make charitable contributions only if they can convince the shareholders that it is in the best interests of the corporation. C. Corporations may never give loans to its directors. D. Corporations may guarantee other corporations’ obligations if it is in reasonable furtherance of the corporation’s business 7. X Company has been doing business as a partnership, but the owners decided to incorporate in Delaware. X has branch offices in Delaware and Pennsylvania. Which of the following is correct? A. X must also incorporate in Pennsylvania because it has branch offices there. B. X is a foreign corporation in Pennsylvania. C. X is a domestic corporation in Pennsylvania. D. X is a de facto corporation in Pennsylvania 8. Which of the following is not considered an advantage of the corporation over the partnership? A. Perpetual existence of corporation. B. The corporation is a separate legal entity. C. The corporation results in individuals owning the corporation paying less taxes than those owning a partnership. D. It is typically easier to raise large amounts of capital in the corporation versus the partnership, 9. In a client/server environment, the “client” is most likely to be the A. Supplier of the computer system. B. Computers of various users. C. Computer that contains the network’s software and provides services to a server. D. Database administrator. 10. Which of the following is not a characteristic of a batch…

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