Chapter 17 & 18 Questions1. Al and Peg do business as Ferguson Partners. In most states, for purposes of suing and being sued, Ferguson Partners would be treated as:a. An aggregate of the individual partnersb. A natural personc. An entityd. A non-existent party2. Gem Saloon, LLC is a limited liability company. It has four members. Like anyother LLC with two or more members, unless Gem Saloon chooses otherwise, the firm will be taxed as:a. A corporationb. A personc. A partnershipd. A sole proprietorshipe. It won’t be taxed3. Glen and Dot are directors and shareholders of SomethingToCuddle, Inc. Dot’s written authorization to Glen to vote Dot’s shares at a shareholders’ meeting isa. A violation of the duty of loyaltyb. A preemptive rightc. A proxyd. A quorum4. Treehorn Corporation authorizes Jeffrey, its employee to oversee its timber operation. In the course of his employment, Jeffrey disposes of the operation’s waste illegally. Walter is a Treehorn shareholder. Liability for this act most likely rests with Walter to:a. No extentb. The proportionate extent of the number of shares Walter ownsc. The amount of Walter’s investment in the firmd. The full extent5. Bernie enters into an agreement with What’sTheRumpus?, Inc., to operate a franchise (a book store/newsstand) in Smalltown. Later, What’sTheRumpus? grants franchises to others within Smalltown. Bernie files a lawsuit to close them. If the court rules in Bernie’s favor it will most likely be on the ground that:a. What’sTheRumpus violated antitrust lawsb. What’sTheRumpus violated the implied covenant of good faith and fair dealingc. Bernie paid the franchise feed. Bernie was the first What’sTheRumpus franchisee in smalltown6. Jerry, Marge and Shep want to form a limited partnership to manage their True Coat Painting art supply shop. Their firm must have:a. At least one general partner and one limited partnerb. At least two general partnersc. At least two limited partnersd. No general partners7. Norville is considering forms of business organizations for Strong Stitch, a tailoring shop. An advantage of a limited liability partnership is that partners may be able to avoid personal liability for:a. Any partnership obligationb. Only other partners’ wrongdoingsc. Only partnership obligations that exceed capital contributionsd. Only partnership obligations that fall within capital contributions8. Maude owns Urban Achiever Corporation. Maude uses Urban Achiever’s funds to pay her personal expenses, creates Fun and Games Corporation to engage in the same business as Urban Achiever, transfers Urban Achiever’s assets to Fun and Games, and petitions Urban Achiever into bankruptcy. This most likely warrants:a. A bonus to Maude for financial maneuversb. A discharge for Urban Achiever in bankruptcyc. A peirce of Urban Achiever’s corporate veild. A review of Fun and Games’ articles of