Question

6) Select the best summary of the finding in the case of Anderson v. Bellino.

		A) The court found that the lotteries are inherently risky and that the two entrepreneurs, Anderson and Bellino assumed the risk of losing their investment.
	B)	The court found that partners in a general partnership are not entitled to a salary unless both partners agree.
C)		The court concluded that Bellino, an officer, director, and 50 percent shareholder in LaVista Lottery, Inc. had breached in fiduciary obligations and had unlawfully usurped a corporate opportunity that was rightfully LaVista's.
	D)	The court found that, although Bellino, an officer, director, and 50 percent shareholder in LaVista Lottery, Inc. had acted badly, Bellino's actions were protected under the Business Judgment Rule.

7) What is the Uniform Partnership Act (UPA)? Select all that apply.

	A.	The Uniform Partnership Act is a federal statute that governs business partnerships in the United States .
	B.	The Uniform Partnership Act is a model state law drafted by the National Conference of Commissioners on Uniform State Laws regarding the governance of business partnerships residing in any state within the United States.
	C.	The Uniform Partnership Act provides many default rules that apply to a partnership unless the partners agree otherwise.
		D) The Uniform Partnership Act requires that partnerships adopt written agreements that govern the relationship among the partners

8. What agency enforces federal securities laws?

	A.	Department of the Treasury
	B.	Federal Reserve Board
	C.	Federal Deposit Insurance Corporation
	D.	Securities and Exchange Commission

9. Which of the following are disadvantages of a corporation? Check all that apply.

	A.	Strict legal formalities.
	B.	Limited capital options.
	C.	Entity level taxation.
	D.	Joint and several liability among owners for entity obligations.

10. Which of the following factors will a court consider in making a determination to pierce the corporate veil?

	A.	Company management has made bad business decisions.
	B.	The company's charter does not allow for cumulative voting.
	C.	There are only a few shareholders.
	D.	Assets of the corporation are commingled with assets of the shareholders.
	E.	The company has no board of directors.
	F.	Fraud has been perpetrated.
	G.	The corporation has failed to observe corporate formalities.
	H.	The company suffers from inadequate capitalization.

Answer 1

6) Select the best summary of the finding in the case of Anderson v. Bellino

Answer :C)  

The court concluded that Bellino, an officer, director, and 50 percent shareholder in LaVista Lottery, Inc. had breached in fiduciary obligations and had unlawfully usurped a corporate opportunity that was rightfully LaVista's.

7)What is the Uniform Partnership Act (UPA)? Select all that apply.

Answer :All options are applicable

A. The Uniform Partnership Act is a federal statute that governs business partnerships in the United States .

B. The Uniform Partnership Act is a model state law drafted by the National Conference of Commissioners on Uniform State Laws regarding the governance of business partnerships residing in any state within the United States.

C. The Uniform Partnership Act provides many default rules that apply to a partnership unless the partners agree otherwise.

D) The Uniform Partnership Act requires that partnerships adopt written agreements that govern the relationship among the partners

8. What agency enforces federal securities laws?

Answer :(D)

Securities and Exchange Commission

9. Which of the following are disadvantages of a corporation? Check all that apply.

Answer : A.

Strict legal formalities is disadvantage of corporations. Formation of a corporation is relatively expensive and time-consuming than other business forms as its formation involves strict legal formalities.

10.Which of the following factors will a court consider in making a determination to pierce the corporate veil?

Answer:D, F, G, H

In the following circumstances the law pierce the corporate veil :

(1) failure to observe formalities

(2) commingling of assets

(3) inadequate capitalization

(4) fraud

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