LEGL 2700 ROESSING TEST 3
CERTIFICATION EVALUATION SET 2026
ANSWERS GUARANTEED PASS
⫸ Benefit Corporation Answer: a corporate form that requires directors
to ensure that the corporation meets explicit social goals in addition to
producing shareholder profits
⫸ Managers Answer: A person designated and charged with day-to-day
operations of a limited liability company
⫸ Organizer Answer: The parties responsible for bringing a limited
liability company into existence. These parties correspond to the
functions of incorporators with respect to corporations
⫸ Security Answer: An investment in which the investor does not
participate in management
⫸ Securities and exchange commission Answer: The federal
administrative agency that regulates the securities industry
⫸ Securities act of 1933 Answer: The federal law that regulates the
initial sale of securities to the public
,⫸ Issuer Answer: The term in securities law for an individual or
business organization offering a security for sale to the public
⫸ Underwriter Answer: The party that, in securities law, guarantees the
issuer that the securities offered for sale will be sold
⫸ Controlling person Answer: The person who has the control of, or is
controlled by, the issuer of securities in securities laws
⫸ Seller Answer: In commercial law, a person who sells of contracts to
sell goods
⫸ Closely held Answer: An organization that is owned by only a few
people
⫸ Publicly held Answer: A business organization that has hundreds, if
not thousands, of owners who can exchange their ownership interests on
public exchanges
⫸ Dissolution Answer: The cancellation of an agreement, thereby
rescinding its binding force.
⫸ Sole proprietorship Answer: The simplest form of business
organization, created and controlled by one owner
,⫸ Partnership Answer: A business organization involving two or more
persons agreeing to conduct a commercial venture while sharing its
profits and losses
⫸ Articles of partnership Answer: Another name for a formally drafted
partnership agreement
⫸ Assumed-name statute Answer: A state law that requires partners to
make a public filing of their identities if their partnership operates under
a name that does not reveal the partners' identities
⫸ Buy and sell agreement Answer: A contract, usually among partners,
but perhaps among shareholders, wherein one party agrees to but the
ownership interest held by another party or the first party agrees to sell
such an interest to the other party. These contractual provisions help
provide for a transition of owners without harming the business of the
organization
⫸ Jointly and severally liable Answer: The legal principle that makes
two or more people, usually partners, liable for an entire debt as
individuals or in any proportional combination
⫸ Corporation Answer: An artificial, but legal, person created by state
law
, ⫸ Domestic Corporation Answer: A business organization created by
the issuance of a state charter that operates in the state that issued the
charter
⫸ Foreign Corporation Answer: A business organization, created by the
issuance o a state charter, that operates in states other than the one
issuing the charter
⫸ Alien Corporation Answer: A corporation created under the authority
of a foreign country
⫸ Charter Answer: The legal document issued by a state when creating
a new corporation
⫸ Incorporators Answer: Those individuals who are responsible for
bringing a corporation into being
⫸ Articles of incorporation Answer: The legal document that forms the
application for a state charter of incorporation
⫸ Shareholders Answer: The owners of corporations
⫸ Directors Answer: Those individuals who are elected by the
shareholders to decide the goals and objectives for the corporate
organization
CERTIFICATION EVALUATION SET 2026
ANSWERS GUARANTEED PASS
⫸ Benefit Corporation Answer: a corporate form that requires directors
to ensure that the corporation meets explicit social goals in addition to
producing shareholder profits
⫸ Managers Answer: A person designated and charged with day-to-day
operations of a limited liability company
⫸ Organizer Answer: The parties responsible for bringing a limited
liability company into existence. These parties correspond to the
functions of incorporators with respect to corporations
⫸ Security Answer: An investment in which the investor does not
participate in management
⫸ Securities and exchange commission Answer: The federal
administrative agency that regulates the securities industry
⫸ Securities act of 1933 Answer: The federal law that regulates the
initial sale of securities to the public
,⫸ Issuer Answer: The term in securities law for an individual or
business organization offering a security for sale to the public
⫸ Underwriter Answer: The party that, in securities law, guarantees the
issuer that the securities offered for sale will be sold
⫸ Controlling person Answer: The person who has the control of, or is
controlled by, the issuer of securities in securities laws
⫸ Seller Answer: In commercial law, a person who sells of contracts to
sell goods
⫸ Closely held Answer: An organization that is owned by only a few
people
⫸ Publicly held Answer: A business organization that has hundreds, if
not thousands, of owners who can exchange their ownership interests on
public exchanges
⫸ Dissolution Answer: The cancellation of an agreement, thereby
rescinding its binding force.
⫸ Sole proprietorship Answer: The simplest form of business
organization, created and controlled by one owner
,⫸ Partnership Answer: A business organization involving two or more
persons agreeing to conduct a commercial venture while sharing its
profits and losses
⫸ Articles of partnership Answer: Another name for a formally drafted
partnership agreement
⫸ Assumed-name statute Answer: A state law that requires partners to
make a public filing of their identities if their partnership operates under
a name that does not reveal the partners' identities
⫸ Buy and sell agreement Answer: A contract, usually among partners,
but perhaps among shareholders, wherein one party agrees to but the
ownership interest held by another party or the first party agrees to sell
such an interest to the other party. These contractual provisions help
provide for a transition of owners without harming the business of the
organization
⫸ Jointly and severally liable Answer: The legal principle that makes
two or more people, usually partners, liable for an entire debt as
individuals or in any proportional combination
⫸ Corporation Answer: An artificial, but legal, person created by state
law
, ⫸ Domestic Corporation Answer: A business organization created by
the issuance of a state charter that operates in the state that issued the
charter
⫸ Foreign Corporation Answer: A business organization, created by the
issuance o a state charter, that operates in states other than the one
issuing the charter
⫸ Alien Corporation Answer: A corporation created under the authority
of a foreign country
⫸ Charter Answer: The legal document issued by a state when creating
a new corporation
⫸ Incorporators Answer: Those individuals who are responsible for
bringing a corporation into being
⫸ Articles of incorporation Answer: The legal document that forms the
application for a state charter of incorporation
⫸ Shareholders Answer: The owners of corporations
⫸ Directors Answer: Those individuals who are elected by the
shareholders to decide the goals and objectives for the corporate
organization
