BLAW 316 Final
Define a principal-agent relationship Correct Answers When
an agent act on behalf of and instead of the principal in dealing
with third parties
Define Ultra vires doctrine Correct Answers Any act of a
corporation that is beyond its express or implied powers.
How are corporate directors elected? Correct Answers The first
board of directors is usually appointed by the incorporators.
After that, directors are elected by the shareholders. Usually
serve one-year terms.
How are corporations taxed? Correct Answers Corporations
pay income taxes on net profits and shareholders pay income tax
on disbursed dividends that they receive. (Double-taxation)
How can agency relationships be formed? Correct Answers 1.
Agreement - The agency relationship is formed through express
consent (oral or written) or implied conduct.
2. Ratification - The principal either by act or by agreement
ratifies that conduct of a person who is not in fact an agent.
3. Estoppel - The principal causes a third person to believe that
another person is the principal's agent, and the third person acts
to his or her detriment in reasonable reliance on that belief.
4. Operation of law - The agency relationship is based on a
social duty or formed in emergency situations when the agent is
unable to contact the principal and failure to act outside the
scope of the agent's authority would case the principal
substantial loss.
, How can corporations get into legal trouble with the law?
Correct Answers A corporation is liable for the torts committed
by its agents or officers within the course and scope of their
employment.
How is an LLC formed? Correct Answers Articles of
organization must be filed with the appropriate state office --
usually the office of the secretary of state -- setting forth the
name of the business, its principal address, the names of the
owners, and other relevant information.
How is an LLC operated and managed? Correct Answers
When the LLC is formed, in an operating agreement, members
decide how the business will be managed and what rules will
apply. An LLC can be managed by members only, by some
nonmembers and some members, and by nonmembers only.
What are appraisal rights? Correct Answers Rights of
dissenting shareholders to receive the fair value for their shares
when a merger or consolidation takes place.
What are considered the promotion activities involved in the
formation of a corporation? Correct Answers Persons who
enter contracts on behalf of the future corporation that are
personally liable on all pre-incorporation contracts until the
corporation is formed and assumes the contracts by novation.
What are corporations two main types of financing? Correct
Answers 1. Bonds
2. Stocks
Define a principal-agent relationship Correct Answers When
an agent act on behalf of and instead of the principal in dealing
with third parties
Define Ultra vires doctrine Correct Answers Any act of a
corporation that is beyond its express or implied powers.
How are corporate directors elected? Correct Answers The first
board of directors is usually appointed by the incorporators.
After that, directors are elected by the shareholders. Usually
serve one-year terms.
How are corporations taxed? Correct Answers Corporations
pay income taxes on net profits and shareholders pay income tax
on disbursed dividends that they receive. (Double-taxation)
How can agency relationships be formed? Correct Answers 1.
Agreement - The agency relationship is formed through express
consent (oral or written) or implied conduct.
2. Ratification - The principal either by act or by agreement
ratifies that conduct of a person who is not in fact an agent.
3. Estoppel - The principal causes a third person to believe that
another person is the principal's agent, and the third person acts
to his or her detriment in reasonable reliance on that belief.
4. Operation of law - The agency relationship is based on a
social duty or formed in emergency situations when the agent is
unable to contact the principal and failure to act outside the
scope of the agent's authority would case the principal
substantial loss.
, How can corporations get into legal trouble with the law?
Correct Answers A corporation is liable for the torts committed
by its agents or officers within the course and scope of their
employment.
How is an LLC formed? Correct Answers Articles of
organization must be filed with the appropriate state office --
usually the office of the secretary of state -- setting forth the
name of the business, its principal address, the names of the
owners, and other relevant information.
How is an LLC operated and managed? Correct Answers
When the LLC is formed, in an operating agreement, members
decide how the business will be managed and what rules will
apply. An LLC can be managed by members only, by some
nonmembers and some members, and by nonmembers only.
What are appraisal rights? Correct Answers Rights of
dissenting shareholders to receive the fair value for their shares
when a merger or consolidation takes place.
What are considered the promotion activities involved in the
formation of a corporation? Correct Answers Persons who
enter contracts on behalf of the future corporation that are
personally liable on all pre-incorporation contracts until the
corporation is formed and assumes the contracts by novation.
What are corporations two main types of financing? Correct
Answers 1. Bonds
2. Stocks
