Question

18,19,20

18) Adam, Terry and Victor want to form ATV Corporation. Which of the following is not a step in forming the corporation? 15. (a) selecting a state of incorporation (b) preparing articles of incorporation (c) adopting bylaws at a shareholders' meeting (d) filing articles of incorporation (e) none of the above 16 17 19) Tim and Myra started a general partnership called "Purrrfect Pets". Tim and Myra each have personal assets exceeding $200,000 in value; however, Tim only invested $3,000 and Myra invested $7,000 in the business. If the partnership cannot pay its bills totaling $50,000 and is sued, then the MOST Tim could lose is (a) $O (b) $3,000 (c) $50,000 (d) $7,000 (e) none of the above 20) The board of directors of U.S. Goods Corporation announces that the corporation will pay a cash dividend to its shareholders. Once declared, a cash dividend is (a) a corporate debt (b) a personal debt of the directors (c) a personal debt of the shareholders (d) an illusory promise

Answer 1

Answer 18.

Option c is correct -adopting bylaws is not a step

Answer 19.

Option c is correct - as in general partnership, any partner may be sued for full amount

Answer 20.

Option a is correct - a corporate debt