BUL 3130 EXAM QUESTIONS AND
CORRECT ANSWERS ALREADY
PASSED
Which of the following is not required in order to show standing to assert a claim? -
Answer-The party must be a citizen or taxpayer eligible to use the U.S. court system.
The filing of the complaint occurs during which stage of litigation? - Answer-the
pleadings
A motion for a court to issue a ruling declaring that no trial is necessary because there
are no essential facts in dispute is called a - Answer-motion for summary judgment.
What happens if a civil trial results in a hung jury? - Answer-The litigants must start the
process over and conduct a new trial in front of a new jury.
A complaint will contain each of the following except: - Answer-a statement of the
evidence the plaintiff will produce and a list of potential witnesses to be called.
The designation "Smith Group Management, LLC" is a valid designation for a limited
liability company (t/f) - Answer-true
LLCs are pass-through entities for tax purposes; however, LLPs are taxed at the entity
level without tax liability passing to partners other than their personal salary income if
any. (t/f) - Answer-false
Limited Liability Companies can only be capitalized through debt from private or
commercial lenders. (t/f) - Answer-false
In order to form an LLC in the sate of Florida, a written management agreement must
be submitted to the state along with Articles of Organization. (t/f) - Answer-false
A corporation incorporated in Utah and doing business in Nevada is classified as a(n)
_________ corporation in Nevada - Answer-foreign
A person who performs pre-incorporation duties on behalf of the forming corporation is
called a - Answer-promoter
, Private equity funding provided by a group of professional investors for use in
developing a business is called_____________________ . - Answer-venture capital
A corporation exists as an independent legal person separate from its principals. (t/f) -
Answer-true
To qualify for Subchapter S status with the IRS, a majority of the shareholders must
consent to the Subchapter S designation (t/f) - Answer-false
Any corporation that does not become profitable is designated as a "non-profit
corporation". (t/f) - Answer-false
Which of the following statements is incorrect? - Answer-A corporation may not incur
obligations separate from those of its principals.
Which of the following is NOT a factor used by courts to determine whether to pierce the
corporate veil? - Answer-Poor management decisionmaking by inadequately trained
managers
Immediately after filing Articles of Incorporation, a corporation's first act should be to
__________________________________. - Answer-Hold an orginizational meeting
CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name.
The loan is payable with interest over five years. After paying on the loan regularly for
two years, the business falters due to the economy, and CJ and Danny default on the
loan. Their business has no assets. Which of the following statements best describes
CJ and Danny's liability in this case? - Answer-CJ and Danny have no personal liability
for the debt unless they pledged personal assets as collateral or signed a personal
guarantee.
Black's Law Dictionary, as cited in the textbook, defines the term "law" as including each
of the following except: - Answer-a tool for regulating personal ethics.
Jurisprudence is defined as: - Answer-the science and philosophy of law.
The official publication of federal statutory law is the - Answer-United States Code
The Uniform Commercial Code has been adopted in every state except - Answer-
Louisiana
The National Conference of Commissioners on Uniform State Laws (NCCUSL) was
formed by ____ for the purpose of establishing uniform standards in areas of law where
national interests would be achieved through the use of uniform laws. - Answer-The
American Bar Association
CORRECT ANSWERS ALREADY
PASSED
Which of the following is not required in order to show standing to assert a claim? -
Answer-The party must be a citizen or taxpayer eligible to use the U.S. court system.
The filing of the complaint occurs during which stage of litigation? - Answer-the
pleadings
A motion for a court to issue a ruling declaring that no trial is necessary because there
are no essential facts in dispute is called a - Answer-motion for summary judgment.
What happens if a civil trial results in a hung jury? - Answer-The litigants must start the
process over and conduct a new trial in front of a new jury.
A complaint will contain each of the following except: - Answer-a statement of the
evidence the plaintiff will produce and a list of potential witnesses to be called.
The designation "Smith Group Management, LLC" is a valid designation for a limited
liability company (t/f) - Answer-true
LLCs are pass-through entities for tax purposes; however, LLPs are taxed at the entity
level without tax liability passing to partners other than their personal salary income if
any. (t/f) - Answer-false
Limited Liability Companies can only be capitalized through debt from private or
commercial lenders. (t/f) - Answer-false
In order to form an LLC in the sate of Florida, a written management agreement must
be submitted to the state along with Articles of Organization. (t/f) - Answer-false
A corporation incorporated in Utah and doing business in Nevada is classified as a(n)
_________ corporation in Nevada - Answer-foreign
A person who performs pre-incorporation duties on behalf of the forming corporation is
called a - Answer-promoter
, Private equity funding provided by a group of professional investors for use in
developing a business is called_____________________ . - Answer-venture capital
A corporation exists as an independent legal person separate from its principals. (t/f) -
Answer-true
To qualify for Subchapter S status with the IRS, a majority of the shareholders must
consent to the Subchapter S designation (t/f) - Answer-false
Any corporation that does not become profitable is designated as a "non-profit
corporation". (t/f) - Answer-false
Which of the following statements is incorrect? - Answer-A corporation may not incur
obligations separate from those of its principals.
Which of the following is NOT a factor used by courts to determine whether to pierce the
corporate veil? - Answer-Poor management decisionmaking by inadequately trained
managers
Immediately after filing Articles of Incorporation, a corporation's first act should be to
__________________________________. - Answer-Hold an orginizational meeting
CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name.
The loan is payable with interest over five years. After paying on the loan regularly for
two years, the business falters due to the economy, and CJ and Danny default on the
loan. Their business has no assets. Which of the following statements best describes
CJ and Danny's liability in this case? - Answer-CJ and Danny have no personal liability
for the debt unless they pledged personal assets as collateral or signed a personal
guarantee.
Black's Law Dictionary, as cited in the textbook, defines the term "law" as including each
of the following except: - Answer-a tool for regulating personal ethics.
Jurisprudence is defined as: - Answer-the science and philosophy of law.
The official publication of federal statutory law is the - Answer-United States Code
The Uniform Commercial Code has been adopted in every state except - Answer-
Louisiana
The National Conference of Commissioners on Uniform State Laws (NCCUSL) was
formed by ____ for the purpose of establishing uniform standards in areas of law where
national interests would be achieved through the use of uniform laws. - Answer-The
American Bar Association
