USF BUL 3320 EXAM 4 FINAL REVIEW
QUESTIONS AND ANSWERS
Board of directors - Correct Answers -a panel of people elected by shareholders to
make policy decisions concerning the operation of a corporation
Corporate officers - Correct Answers -Employees of a corp who are appointed by the
board of directors to manage the day-to-day operations of the corp
Limited liability of shareholders - Correct Answers -a general rule of corporate law that
provides that generally, shareholders are only liable to the extent of their capital
contributions for the debts and obligations of the corporation and are not personally
liable for the debts and obligations of the corporation
Corporate Bylaws - Correct Answers -A detailed set of rules adopted by the board of
directors after the corp is incorporated. They contain provisions for managing the
business and the affairs of the corporation. They govern internal management structure.
They may be amended by the board of directors
Corporate seal - Correct Answers -a design that contains the name of the corp and the
date of incorporation
Limited Liability Company (LLC) - Correct Answers -Unincorporated business entity that
combines the most favorable attributes of general partnerships, limited partnerships,
and corporations. It is a separate legal entity.
Member - Correct Answers -Owner of an LLC
Taxation of LLC's - Correct Answers -taxed as partnership, unless it elects to be taxes
as a corporation. Income or losses flow through the members individual income tax
returns
Powers of an LLC - Correct Answers -Same powers as an individual to do all things
necessary or convenient to carry on its business affairs
, Formation of an LLC - Correct Answers -Certificate of Interest: Document demonstrates
evidence of a member's ownership interests in an LLC
At Will LLC - Correct Answers -LLC has no specified term ofduration
Term LLC - Correct Answers -LLC with specified term of duration
Liability of an LLC - Correct Answers -Liable for any loss or injury caused to anyone as
a result of a wrongful act or omission by a member, a manager, an agent, or an
employee of the LLC while acting within the ordinary course of business of the LLC
Limited Liability of members of LLC's - Correct Answers -limited to the extend of their
capital contributions
Member-Managed LLC - Correct Answers -members do not designate managers to
manage the LLC. The LLC is managed by its members. All members have agency
authority to bind the LLC to contracts
Manager-Managed LLC - Correct Answers -members appoint certain members or
nonmembers to manage the LLC. nonmanager members have no right to manage the
LLC. Only the managers have authroity to bind the LLC to contracts
Ethics - Correct Answers -A set of moral principles or values that governs the conduct of
an individual or group
Major Theories of Business Ethics - Correct Answers -Ethical Fundamentalism,
Utilitarianism, Rawl's Social Justice Theory, Ethical Relativism, Kantian Ethics
Ethical Fundamentalism - Correct Answers -A person looks to an outside source or a
central figure for ethical rules or commands. (Example: The Bible, a Religious Leader,
etc) Does not permit people to determine right or wrong for themselves
Utilitarianism - Correct Answers -People must choose the action or follow the rule that
provides the greatest good to society. Originates in the works of Bentham and Stuart.
Has been criticized because it is hard to apply, treats morality as impersonal calculation,
and its hard to estimate the good that will result from different actions.
Kantian Ethics - Correct Answers -A person owes moral duties based on universal rules
of Consistency (all cases treated alike w/ no exceptions) and Reversibility (actor must
abide by the rule he or she uses to judge the morality of someone else's conduct) Critics
argue that it is hard to reach a consensus as to what the universal rules should be.
Rawl's Social Justice Theory - Correct Answers -A person has a social contract w/ all
others in society to obey moral rules necessary for people to live in peace and harmony.
Origins in work of Locke and Rousseau. Principles of justice should b chosen by
persons who do not yet know their position in society, this ignorance would permit
QUESTIONS AND ANSWERS
Board of directors - Correct Answers -a panel of people elected by shareholders to
make policy decisions concerning the operation of a corporation
Corporate officers - Correct Answers -Employees of a corp who are appointed by the
board of directors to manage the day-to-day operations of the corp
Limited liability of shareholders - Correct Answers -a general rule of corporate law that
provides that generally, shareholders are only liable to the extent of their capital
contributions for the debts and obligations of the corporation and are not personally
liable for the debts and obligations of the corporation
Corporate Bylaws - Correct Answers -A detailed set of rules adopted by the board of
directors after the corp is incorporated. They contain provisions for managing the
business and the affairs of the corporation. They govern internal management structure.
They may be amended by the board of directors
Corporate seal - Correct Answers -a design that contains the name of the corp and the
date of incorporation
Limited Liability Company (LLC) - Correct Answers -Unincorporated business entity that
combines the most favorable attributes of general partnerships, limited partnerships,
and corporations. It is a separate legal entity.
Member - Correct Answers -Owner of an LLC
Taxation of LLC's - Correct Answers -taxed as partnership, unless it elects to be taxes
as a corporation. Income or losses flow through the members individual income tax
returns
Powers of an LLC - Correct Answers -Same powers as an individual to do all things
necessary or convenient to carry on its business affairs
, Formation of an LLC - Correct Answers -Certificate of Interest: Document demonstrates
evidence of a member's ownership interests in an LLC
At Will LLC - Correct Answers -LLC has no specified term ofduration
Term LLC - Correct Answers -LLC with specified term of duration
Liability of an LLC - Correct Answers -Liable for any loss or injury caused to anyone as
a result of a wrongful act or omission by a member, a manager, an agent, or an
employee of the LLC while acting within the ordinary course of business of the LLC
Limited Liability of members of LLC's - Correct Answers -limited to the extend of their
capital contributions
Member-Managed LLC - Correct Answers -members do not designate managers to
manage the LLC. The LLC is managed by its members. All members have agency
authority to bind the LLC to contracts
Manager-Managed LLC - Correct Answers -members appoint certain members or
nonmembers to manage the LLC. nonmanager members have no right to manage the
LLC. Only the managers have authroity to bind the LLC to contracts
Ethics - Correct Answers -A set of moral principles or values that governs the conduct of
an individual or group
Major Theories of Business Ethics - Correct Answers -Ethical Fundamentalism,
Utilitarianism, Rawl's Social Justice Theory, Ethical Relativism, Kantian Ethics
Ethical Fundamentalism - Correct Answers -A person looks to an outside source or a
central figure for ethical rules or commands. (Example: The Bible, a Religious Leader,
etc) Does not permit people to determine right or wrong for themselves
Utilitarianism - Correct Answers -People must choose the action or follow the rule that
provides the greatest good to society. Originates in the works of Bentham and Stuart.
Has been criticized because it is hard to apply, treats morality as impersonal calculation,
and its hard to estimate the good that will result from different actions.
Kantian Ethics - Correct Answers -A person owes moral duties based on universal rules
of Consistency (all cases treated alike w/ no exceptions) and Reversibility (actor must
abide by the rule he or she uses to judge the morality of someone else's conduct) Critics
argue that it is hard to reach a consensus as to what the universal rules should be.
Rawl's Social Justice Theory - Correct Answers -A person has a social contract w/ all
others in society to obey moral rules necessary for people to live in peace and harmony.
Origins in work of Locke and Rousseau. Principles of justice should b chosen by
persons who do not yet know their position in society, this ignorance would permit
