Review 4

111. Combining two corporations so that one is absorbed by the other is called a(n) _______________________________________________________________.

The most important right a stockholder has is the right to ____________________.

The person who receives the proceeds of an insurance policy is the __________________________________________________.

The consideration paid for insurance coverage is the ___________________.

Does a partner have an insurable interest in the property owned by the firm to the extent of the possible loss?

CEO stands for ______________________________________________________.

A withdrawing partner has liability for all partnership debts incurred up to the time of withdrawal unless the creditors have expressly released the partner.

• True

• False

Can three persons who agree to contribute property to the running of a business as co-owners for the purpose of making a profit have formed a partnership even though they do no call themselves partners?

• Yes

• No

The name of a withdrawing partner should be removed from the firm name on all stationery.

• True

• False

A person who exposes wrongdoing in an organization is called a(n) ________________________________________________________.

A combination of two corporations to form a new one is called a(n) _________________________________________________________.

The law that puts the responsibility for greater financial disclosure on CEOs and CFOs of a corporation is the ____________________________________________________ Act.

If requested, trueand full information of all things affecting the partnership must be rendered to the legal representative of any deceased partner.

• True

• False

A corporate officer who commits a tort or crime is personally liable.

• True

• False

In order to be valid, a stockholders’ meeting requires the presence of a minimum number of shares that must be represented in order to lawfully transact business.

• True

• False

Any person competent to make a contract has the competence to be a partner.

• True

• False

The main disadvantage of a corporation is that the people who own or control a majority of the voting stock have the sole voice in management.

• True

• False

As agents to a partnership firms, partners have a(n) ________________________ duty to the firm.

The company agreeing to compensate a person for a certain loss is known as the __________________________________________________________.

The maximum amount an insurer agrees to pay in case of a loss is the __________________________________________________________.

Does state law require a corporation to have a President and a Vice President?

• Yes

• No

There are no formalities to being and operating a sole proprietorship.

• True

• False

The partnership is not liable for unauthorized acts beyond both the actual and apparent authority of one partner.

• True

• False

An ultra vires contract generally is binding on the parties to the contract.

• True

• False

A partnership can only be formed to run a lawful business

• True

• False

When business debts are payable from personal, as well as business assets, there is

A business relationship in which two or more persons combine their labor or property for a single undertaking only is called a(n)

Stock paid for with property of inflated value is called ____ stock

A corporation’s stock that is reacquired by that corporation is ________________________ stock.

Does the willful concealment of a material fact render an insurance policy voidable in most states?

• Yes

• No

May a stockholder’s authorization to another to vote the stockholder’s stock be revoked at any time?

• Yes

• No

Is notice of dissolution unnecessary when a partnership is dissolved by judicial decree?

• Yes

• No

The basis on which profits and losses are to be shared cannot be changed by a majority of the partners.

• True

• False

A partner may obtain a decree of dissolution when a court declares another partner of unsound mind.

• True

• False

The death of a stockholder does not dissolve a corporation.

• True

• False

Does a partnership have liability for the torts committed by a partner in the course of partnership business and in furtherance of partnership interests?

• Yes

• No

The death of one member of a partnership automatically dissolves the partnership unless the agreement provides it shall not be dissolved.

• True

• False

A corporation can be sued in the corporate name.

• True

• False

Are directors as a group both fiduciaries and agents of a corporation?

• Yes

• No

A partnership with no limitation on a partner's rights, duties, or liabilities is called a(n) _________________ partnership.

When a partnership dissolves, the losses will normally be shared equally by the partners.

• True

• False

An officer, director, or owner of more than ten percent of a corporation’s stock is a(n) ___________________________________________________________.

Profits made by an officer buying and selling the corporation’s stock within a period of six months are called ________________________________________________ profits.

Is insurance a contract whereby a party transfers a risk of financial loss to the insurance company for a fee?

• Yes

• No

Dividends can be paid only in cash.

• True

• False

Is the right to vote the most important right of a stockholder?

• Yes

• No

Directors do not incur liability for losses when they act with due diligence and reasonably sound judgment.

• True

• False

Does a partner have a duty to put the firm's interest above personal advantage?

• Yes

• No