BUL3130 Exam 2 | UPDATED Questions with 100% Verified
Answers
Question: T/F An S corporation is taxed in the same way that a C corporation is taxed
Answer:
False
Question: T/F A business entity can avoid all liability for its debts and obligations, or for any harm caused to
others if it choses the correct business form
Answer:
True
Question: T/F An LLC is taxed in the same way as a partnership is taxed.
Answer:
True
Question: Generally Speaking, which business form is usually the most beneficial for new businesses
registering or establishing in Florida?
Answer:
LLC
Question: Owners of an LLC
Answer:
Are personally liable for the contractual debts and obligations of the LLC are personally liable for the
negligence of the LLC are personally liable for the negligence of other owners of the LLC Answer - None of
the above
Question: A limited partnership
Answer:
Must have at least one general partner and one limited partner
Question: (T/F) All shareholders of a corporation owe a duty of loyalty to the corporation, such as not
engaging in any action which would benefit one of the corporation's competitors
Answer:
TRUE
, Question: (T/F) In a publicly traded corporation, a shareholder's personal assets are at risk if the corporation
engages in severe acts of negligence that result in catastrophic harm to others
Answer:
FALSE
Question: (T/F) A shareholder can be a director , but cannot be an officer, of a privately held corporation
Answer:
TRUE
Question: Owning a share of a corporation with multiple shares guarantees a shareholder
Answer:
Fractional ownership in the corporation
Question: A court may "pierce the corporate veil" and put shareholder's personal assets at risk if:
Answer:
The corporation was established with the intent to defraud or with criminal intent
Question: The value of a share of a privately held corporation can be determined by
Answer:
assessing the company's balance sheet, including assets and liabilities, to determine share value.
Question: In a partnership which is compromised of a limited partner and general partners, which business
form will provide the general partners with protection from personal liabiity?
Answer:
Limited Liability Limited Partnership (LLLP)
Question: Shares in an S corporation
Answer:
Can either be voting, or non-voting shares
Question: Shares of a publicly traded corporation are commonly owned by
Answers
Question: T/F An S corporation is taxed in the same way that a C corporation is taxed
Answer:
False
Question: T/F A business entity can avoid all liability for its debts and obligations, or for any harm caused to
others if it choses the correct business form
Answer:
True
Question: T/F An LLC is taxed in the same way as a partnership is taxed.
Answer:
True
Question: Generally Speaking, which business form is usually the most beneficial for new businesses
registering or establishing in Florida?
Answer:
LLC
Question: Owners of an LLC
Answer:
Are personally liable for the contractual debts and obligations of the LLC are personally liable for the
negligence of the LLC are personally liable for the negligence of other owners of the LLC Answer - None of
the above
Question: A limited partnership
Answer:
Must have at least one general partner and one limited partner
Question: (T/F) All shareholders of a corporation owe a duty of loyalty to the corporation, such as not
engaging in any action which would benefit one of the corporation's competitors
Answer:
TRUE
, Question: (T/F) In a publicly traded corporation, a shareholder's personal assets are at risk if the corporation
engages in severe acts of negligence that result in catastrophic harm to others
Answer:
FALSE
Question: (T/F) A shareholder can be a director , but cannot be an officer, of a privately held corporation
Answer:
TRUE
Question: Owning a share of a corporation with multiple shares guarantees a shareholder
Answer:
Fractional ownership in the corporation
Question: A court may "pierce the corporate veil" and put shareholder's personal assets at risk if:
Answer:
The corporation was established with the intent to defraud or with criminal intent
Question: The value of a share of a privately held corporation can be determined by
Answer:
assessing the company's balance sheet, including assets and liabilities, to determine share value.
Question: In a partnership which is compromised of a limited partner and general partners, which business
form will provide the general partners with protection from personal liabiity?
Answer:
Limited Liability Limited Partnership (LLLP)
Question: Shares in an S corporation
Answer:
Can either be voting, or non-voting shares
Question: Shares of a publicly traded corporation are commonly owned by
