Chapter 17 18 Questions 1 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 partners b A natural person c An entity d A non existent party 2 Gem Saloon LLC is a limited liability company It has four members Like any other LLC with two or more members unless Gem Saloon chooses otherwise the firm will be taxed as a A corporation b A person c A partnership d A sole proprietorship e It won t be taxed 3 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 is a A violation of the duty of loyalty b A preemptive right c A proxy d A quorum 4 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 extent b The proportionate extent of the number of shares Walter owns c The amount of Walter s investment in the firm d The full extent 5 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 laws b What sTheRumpus violated the implied covenant of good faith and fair dealing c Bernie paid the franchise fee d Bernie was the first What sTheRumpus franchisee in smalltown 6 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 partner b At least two general partners c At least two limited partners d No general partners 7 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 obligation b Only other partners wrongdoings c Only partnership obligations that exceed capital contributions d Only partnership obligations that fall within capital contributions 8 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 maneuvers b A discharge for Urban Achiever in bankruptcy c A peirce of Urban Achiever s corporate veil d A review of Fun and Games articles of incorporation