BLW 3013 Business Law module 2 Questions and Answers

BLW 3013 Business Law module 2 Questions and Answers the management responsibilities clause of a partnership agreement details how partners will make decisions concerning the partnership. t/f - ANSWER-TRUE you and a friend want to sell utsa tee shirts during all home football games. you have secured all the appropriate licensing agreements. however, to mitigate your personal liability, you and your friend create a partnership and agree that it will dissolve the day after the last home game. may a partnership be created for such a short period of time? Yes/No - ANSWER-YES when you and your friends contribute property and cash to your small business corporation, you are financing the corporation with equity. T/F - ANSWER-TRUE Which of the following changes in your partnership typically requires a change in the partnership agreement? a. addition of a new partner b. significant change in the structure of the business ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/8 c. a partnership agreement may not be changed d. a and b - ANSWER-d. a and b book valuation is used to base the value of shares of a partnership on the business assets at the time the business was purchased. T/f - ANSWER-FALSE Asset Valuation your business articles of incorporation are filed with the internal revenue service where they will be reviewed and approved. T/F - ANSWER-FALSE Office of the Secretary of State the uniform partnership act allows a court to determine how to distribute the profits and assets of a business when the business partners never sign a partnership agreement. T/F - ANSWER-TRUE Bylaws is the document that details the powers and rights of shareholders, directors, officers and provides specifics about the time and place of the annual meeting. etc. T/F - ANSWER-TRUE pg 58 ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/8 you and your partner want to assure that the business will continue in the event of the death of other partner. an effective method accomplishes this objective is for you and your business partner to execute which of the following documents? a. articles of incorporation b. bylaws c. management responsibilities clause d. cross purchase buy-sell agreement - ANSWER-d. cross purchase buy-sell agreement a disadvantage of an S corporation is double taxation. T/F - ANSWER-FALSE which of the following may allow your corporate veil to be pierced and make you personally liable? a. not maintaining corporate records b. not using your corporation name on all business marketing materials c. not using your corporation name on all legal documents d. a,b, and c - ANSWER-d. a,b, and c ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/8 to launch healthy eating inc, you and your two partners contribute $5000 of value whether in money or tangible items such as a truck and commercial stove. each of the partners are financing your small business with debt. T/F - ANSWER-False to assure no misunderstanding of the value of all property contributed by you and each business partner, an exhibit should be attached to the partnership agreement that describes all property and its value. T/f - ANSWER-TRUE mary, a partner in you bbq restaurant partnership, decides to leave to "purse other interests" you remind her of the partnership agreements noncompetition clause which includes a time limitation of five years before she may open a competing bbq restaurant. she says she will sue the partnership. when making the decision, the court will consider the reasonableness of the time limitation T/F - ANSWER- TRUE joe a partner in a home cleaning business, purchase a $700 power sprayer from home depot. the business partnership agreement requires two partners to approve any purchase over $500. is the partnership legally liable to pay home depot? yes/no - ANSWER-no the irs allows owners of a small corporation to pay themselves a reasonable salary which will be taxed at their personal tax rate. t/f - ANSWER-TRUE ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 5/8 what is the designation of the person who brings the people and money together to create a corporation and who is responsible for filing the articles of incorporation? a. registered agent b. incorporator tor d. shareholder - ANSWER-b. incorporator the articles of incorporation require you to indicate someone to receive official legal notices. the designation for this person is which of the following? a. registered agent b. incorporator tor d. shareholder - ANSWER-a. registered age