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Marshall is the purchasing agent for the DigitoolArt Corporation. His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation. Assume that Bronson, a computer salesperson, pays Marshall a $20,000 kickback to purchase from him computers needed by the DigitoolArt Corporation. What breach of the duty of loyalty has Marshall committed here?
A) competing with the corporation
B) making a secret profit
C) self-dealing
D) usurping a corporate opportunity
4. A director or corporate officer that does not attend board meetings regularly would be in violation of ________.
A) self-dealing
B) duty of care
C) duty of loyalty
D) duty of obedience
5. Dissolution of a corporation that has begun business or issued shares upon recommendation of the board of directors and a majority vote of the shares entitled to vote is known as ________.
A) liquidation
B) judicial dissolution
C) administrative dissolution
D) voluntary dissolution
6. Which of the following is true of an S corporation?
A) The corporation can have no more than 100 shareholders.
B) Only foreign corporations can be an S corporation.
C) They are taxed at the corporate …show more content…
B) Laura is personally liable as the bank, in good faith, thought she is a general partner.
C) Laura has unlimited personal liability as a limited partner.
D) Laura's liability is restricted to the value of her capital investment in the partnership.
8. New general partners can be admitted only with the ________.
A) approval of at least two-thirds of the partners
B) specific consent of each partner
C) merger with another limited partnership
D) death of or transfer by a general partner
9. General partners have ________ for the debts and obligations of the partnership.
A) limited exemption
B) conditional exemption
C) limited organizational liability
D) unlimited personal liability
10. On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which a bystander, Mildred, is severely injured. Who is liable to Mildred?
A) Stacey
B) Harold
C) Stacey's colleague
D) the firm that represents
A) competing with the corporation
B) making a secret profit
C) self-dealing
D) usurping a corporate opportunity
4. A director or corporate officer that does not attend board meetings regularly would be in violation of ________.
A) self-dealing
B) duty of care
C) duty of loyalty
D) duty of obedience
5. Dissolution of a corporation that has begun business or issued shares upon recommendation of the board of directors and a majority vote of the shares entitled to vote is known as ________.
A) liquidation
B) judicial dissolution
C) administrative dissolution
D) voluntary dissolution
6. Which of the following is true of an S corporation?
A) The corporation can have no more than 100 shareholders.
B) Only foreign corporations can be an S corporation.
C) They are taxed at the corporate …show more content…
B) Laura is personally liable as the bank, in good faith, thought she is a general partner.
C) Laura has unlimited personal liability as a limited partner.
D) Laura's liability is restricted to the value of her capital investment in the partnership.
8. New general partners can be admitted only with the ________.
A) approval of at least two-thirds of the partners
B) specific consent of each partner
C) merger with another limited partnership
D) death of or transfer by a general partner
9. General partners have ________ for the debts and obligations of the partnership.
A) limited exemption
B) conditional exemption
C) limited organizational liability
D) unlimited personal liability
10. On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which a bystander, Mildred, is severely injured. Who is liable to Mildred?
A) Stacey
B) Harold
C) Stacey's colleague
D) the firm that represents