BLAW 3310 Ch. 12 UPDATED ACTUAL Questions and CORRECT Answers

BLAW 3310 Ch. 12 UPDATED ACTUAL
Questions and CORRECT Answers
Sole propriatorship - CORRECT ANSWER - A person doing business for himself or
herself.


Assumed name certificate or d/b/a - CORRECT ANSWER - Charles Miller d/b/a Millers
Burgers
(doing business as)
If a fictitious business name is used, most states require business names to be registered.


Liability of a sole propriator - CORRECT ANSWER - The owner is completely liable for
everything.


Articles of incorperation - CORRECT ANSWER - Provides the following:
1. Name and address of the corporation
2. Name and address of the corporation's registered agent
3. Purpose of the business
4. The class(es) of stock to be issued and their par value
5. Names and addresses of the incorporators


Charter - CORRECT ANSWER - A certificate issued by a state government recognizing
the existence of a corporation as a legal entity.
Issued automatically upon filing the information required by state law and payment of a fee.
Might, for example, give a business the privilege of having the only bank in a town.


Bylaws - CORRECT ANSWER - The rules that regulate and govern the internal
operations of the corporation.
The shareholders, directors, and officers of the corporation must be followed in conducting
corporate activities.