Reference no: EM132134453
1. Which of the following grants absolute limited liability?
A. Sole Proprietorship.
B. Partnership.
C. Limited Partnership.
D. Corporation.
2. “Piercing the corporate veil” becomes appropriate whenever:
A. A de jure corporation exists.
B. The corporation business is treated so carelessly that the corporation and its shareholders are no longer separate entities.
C. A close corporation exists.
D. When a federal agency comes to examine the financial records and the inventory.
3. When a creditor is permitted to collect a debt by taking a portion of someone’s wages, this is called:
A. Skimping.
B. Garnishment.
C. Attachment.
D. Not possible.
4. A new type of corporation that not only seeks to make a profit but also tries to take actions which will have a positive impact on the public as well is called:
A. P.C. Corporation.
B. S. Corporation.
C. Benefit Corporation.
D. Close Corporation
5. David and Emily are officers of Fresh Bottled Water Corporation. As top corporate officers, their compensation is determined by Fresh Bottled Waters:
A. Directors.
B. Incorporators.
C. Other officers.
D. Shareholders.
6. David is not Edward’s agent but enters into a contract with Frank on Edward’s behalf. Edward later contacts Frank to affirm the contract. This is:
A. An agency by agreement.
B. An agency by estoppel.
C. An agency by ratification.
D. An agency by delusion.
7. Stocks that get a preference in receiving a dividend is:
A. Exquisite stock.
B. Payable stock.
C. Common stock.
D. Preferred stock.
8. If a corporation filed for incorporation in Pennsylvania and is conducting business activities in New Jersey, as to New Jersey the corporation is considered to be:
A. An alien corporation.
B. A domestic corporation.
C. A foreign corporation.
D. None of these.
9. Treadwell Tire Manufacturing Company employs Simon as an agent. To terminate Simon’s authority, Treadwell must give actual notice to:
A. Only third parties who are aware of the agency relationship.
B. Simon and any third parties who are aware of the agency relationship.
C. Simon only.
D. The public generally