1. (TCO 6) A director of a corporation does NOT have a duty to:
act diligently and in good faith in conducting corporate business.
act resourcefully and always make the best business judgment.
act on behalf of the beneficiary with great integrity.
act in the best interests of the beneficiary.
2. (TCO 6) Which of the following has the highest priority for payment upon dissolution and winding up of a corporation?
Dividend arrearages owed to preferred shareholders
Claims of common shareholders for return of capital contributions
Claims of outside creditors
Claims of directors for loans made to the corporation
3. (TCO 6) Although the law of partnerships originated in the common law, all states except _____ have adopted the Uniform Partnership Act.
Louisiana
Alabama
Nevada
Wisconsin
4. (TCO 6) Limited liability companies combine:
the cost advantages of incorporation with the decision-making advantages of a sole proprietorship.
the advantages of the investor restrictions of a Sub S corporation with the tax advantages of a corporation.
the liability advantages of a partnership with the tax advantages of a partnership.
the tax advantages of a partnership with the operating advantages of a corporation.
5. (TCO 6) Which of the following would most likely be classified as a security under federal securities law?
A direct investment in gold coins
An agreement with two other people to buy and sell real estate for profit
The purchase of a horse farm to raise thoroughbreds for racing
An investment in a limited partnership that develops oil wells
6. (TCO 8) The SEC requires registered corporations to file a Form 10-Q:
whenever there is a change in control, change in auditor, or resignation of a director.
whenever there are major asset acquisitions and dispositions, and bankruptcy.
which includes information very similar to that found in an IPO registration statement, including audited financial statements.
which contains year-to-date information and unaudited interim financial statements.
7. (TCO 8) Federal government intervention in stock issuance was initiated by the stock market crash of _____.
1970
2001
1929
1945
8. (TCO 8) The purchase of a share of _____ makes that shareholder an owner of the company.
insurance.
revenue.
bond.
stock.
9. (TCO 8) Venture capitalists and franchisors will often require the persons with whom they deal to _____.
incorporate
decorporate
renege
grow
10. (TCO 8) In a limited liability company, the _____ are referred to as interest holders.
vendors
competitors
owners
employees