LEGL 2700 ROESSING EXAM 4
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND ACCURATE SOLUTIONS
⫸ Benefit Corporation - a corporate form that requires directors to
ensure that the corporation meets explicit social goals in addition to
producing shareholder profits
⫸ Managers - A person designated and charged with day-to-day
operations of a limited liability company
⫸ Organizer - The parties responsible for bringing a limited liability
company into existence. These parties correspond to the functions of
incorporators with respect to corporations
⫸ Security - An investment in which the investor does not participate in
management
⫸ Securities and exchange commission - The federal administrative
agency that regulates the securities industry
⫸ Securities act of 1933 - The federal law that regulates the initial sale
of securities to the public
,⫸ Issuer - The term in securities law for an individual or business
organization offering a security for sale to the public
⫸ Underwriter - The party that, in securities law, guarantees the issuer
that the securities offered for sale will be sold
⫸ Controlling person - The person who has the control of, or is
controlled by, the issuer of securities in securities laws
⫸ Seller - In commercial law, a person who sells of contracts to sell
goods
⫸ Closely held - An organization that is owned by only a few people
⫸ Publicly held - A business organization that has hundreds, if not
thousands, of owners who can exchange their ownership interests on
public exchanges
⫸ Dissolution - The cancellation of an agreement, thereby rescinding its
binding force.
⫸ Sole proprietorship - The simplest form of business organization,
created and controlled by one owner
,⫸ Partnership - A business organization involving two or more persons
agreeing to conduct a commercial venture while sharing its profits and
losses
⫸ Articles of partnership - Another name for a formally drafted
partnership agreement
⫸ Assumed-name statute - 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 - 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 - The legal principle that makes two or
more people, usually partners, liable for an entire debt as individuals or
in any proportional combination
⫸ Corporation - An artificial, but legal, person created by state law
, ⫸ Domestic Corporation - A business organization created by the
issuance of a state charter that operates in the state that issued the charter
⫸ Foreign Corporation - A business organization, created by the
issuance o a state charter, that operates in states other than the one
issuing the charter
⫸ Alien Corporation - A corporation created under the authority of a
foreign country
⫸ Charter - The legal document issued by a state when creating a new
corporation
⫸ Incorporators - Those individuals who are responsible for bringing a
corporation into being
⫸ Articles of incorporation - The legal document that forms the
application for a state charter of incorporation
⫸ Shareholders - The owners of corporations
⫸ Directors - Those individuals who are elected by the shareholders to
decide the goals and objectives for the corporate organization
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND ACCURATE SOLUTIONS
⫸ Benefit Corporation - a corporate form that requires directors to
ensure that the corporation meets explicit social goals in addition to
producing shareholder profits
⫸ Managers - A person designated and charged with day-to-day
operations of a limited liability company
⫸ Organizer - The parties responsible for bringing a limited liability
company into existence. These parties correspond to the functions of
incorporators with respect to corporations
⫸ Security - An investment in which the investor does not participate in
management
⫸ Securities and exchange commission - The federal administrative
agency that regulates the securities industry
⫸ Securities act of 1933 - The federal law that regulates the initial sale
of securities to the public
,⫸ Issuer - The term in securities law for an individual or business
organization offering a security for sale to the public
⫸ Underwriter - The party that, in securities law, guarantees the issuer
that the securities offered for sale will be sold
⫸ Controlling person - The person who has the control of, or is
controlled by, the issuer of securities in securities laws
⫸ Seller - In commercial law, a person who sells of contracts to sell
goods
⫸ Closely held - An organization that is owned by only a few people
⫸ Publicly held - A business organization that has hundreds, if not
thousands, of owners who can exchange their ownership interests on
public exchanges
⫸ Dissolution - The cancellation of an agreement, thereby rescinding its
binding force.
⫸ Sole proprietorship - The simplest form of business organization,
created and controlled by one owner
,⫸ Partnership - A business organization involving two or more persons
agreeing to conduct a commercial venture while sharing its profits and
losses
⫸ Articles of partnership - Another name for a formally drafted
partnership agreement
⫸ Assumed-name statute - 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 - 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 - The legal principle that makes two or
more people, usually partners, liable for an entire debt as individuals or
in any proportional combination
⫸ Corporation - An artificial, but legal, person created by state law
, ⫸ Domestic Corporation - A business organization created by the
issuance of a state charter that operates in the state that issued the charter
⫸ Foreign Corporation - A business organization, created by the
issuance o a state charter, that operates in states other than the one
issuing the charter
⫸ Alien Corporation - A corporation created under the authority of a
foreign country
⫸ Charter - The legal document issued by a state when creating a new
corporation
⫸ Incorporators - Those individuals who are responsible for bringing a
corporation into being
⫸ Articles of incorporation - The legal document that forms the
application for a state charter of incorporation
⫸ Shareholders - The owners of corporations
⫸ Directors - Those individuals who are elected by the shareholders to
decide the goals and objectives for the corporate organization
