Question

Jada is starting a restaurant. To limit her personal liability for the business's debts, Jada could form a

(a) corporation

(b) limited liability company

(c) general partnership

(d) both choices (a) and (b) are correct

(e) all of the above

Barry Jones and Anne Smith co-own a bowling alley called "Lake City Lanes". No documents related to the formation or operation of the business has ever been filed in either the Country Clerk's Office or in the NYS Department of State. Barry and Anne both make management decisions and split the profits equally. The business that Barry and Anne own and operate is a

(a) corporation

(b) limited liability company

(c) general partnership

(d) sole proprietorships

(e) none of the above

Ned owns a landscaping business called "Grow and Mow". Ned makes all the management decisions, is personally liable for all expenses, and keeps all profits. Ned has two (2) employees who he pays by the hour. Legally, "Grow and Mow" is a

(a) general partnership

(b) limited partnership

(c) sole proprietorship

(d) either choice (a) or (b) is correct

(e) none of the choices are correct

Which of the following documents must be completed and filed with the state to form a corporation?

(a) Certificate of Assumed Name

(b) Certificate of Limited Partnership

(c) Articles of Organization

(d) Certificate of Incorporation

(e) None of these choices are correct

A "close corporation" is a corporation that

(a) sells its stock privately

(b) is required to conduct its business in the same state where it was formed

(c) sells its stock on a public stock exchange

(d) all of the choices are correct

(e) None of the choices are correct

Which of the following under agency law is NOT a type of authority that an agent might have?

(a) actual express

(b) actual implied

(c) resulting

(d) apparent

(e) all of the choices

Answer 1