University:
Eastern Kentucky University
Course:
BUS 204 | Fundamentals of Business Law and Ethics
Academic year:

2021
Views:

416

Pages:

2
Author:

Macy Harrison

Legal analysis practice problem 8 In a sole proprietorship, the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government. False A sole proprietorship continues after the death of the proprietor. False A partner's profit from a partnership is taxed as income to the firm. False A third party cannot sue one of the partners of a partnership without suing all of the partners. False A partner owes to the partnership and the other partners a duty of loyalty. True In a limited liability partnership, a partner can be exempt from personal liability for the malpractice of other partners. True A limited liability company can be taxed as a corporation. True A member of a limited liability company (LLC) has the power and the right to dissociate from the LLC at any time. False A corporation's ofÏcers and other employees are hired by its shareholders. False In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable. True Jody owns KuppaJava Kiosks, a sole proprietorship. Jody's liability is Unlimited Julia owns and operates Collectable Dolls without creating a separate business organization. She receives all the profits from the doll sales. Collectable Dolls is most likely A sole proprietorship Hollister and Gladys do business as partners in Frothy Confections. For federal income tax purposes, Frothy Confections would be treated as A "pass-through" entity Flip, Gordo, Haruko, and Inez are the member of Regional Gymnastics LLC. With respect to the management of the firm, the members can decide in their operating agreement to be a member-managed LLC only Chocolate Sundry LLC's members and managers are Devlin, EfÏe, and Flavia. After Devlin's relationship to the firm ends, EfÏe and Flavia agree to discontinue the business. This is Optional RayAnn is a corporate ofÏcer for Timmy's Trees, Inc. As a corporate ofÏcer, RayAnn is involved in the daily business operations of Timmy's Trees Myron and Norah would like to form Originals, Inc., to do business in the art market. Generally, the articles of incorporation for a corporation do not include the minutes of the organizational meeting Open & Shutt Gates Corporation has a board of ten directors. Open & Shutt's bylaws do not state any quorum requirements. Normally, a quorum for Open & Shutt would consist of Six directors Josh is a director of Sippy Soups, Inc. Josh opposes a contract that is in Sippy's best interest because Josh would like to enter into the contract for his personal benefit. Josh is liable for a breach of the duty of loyalty Thor Power Products Corporation permits its directors to be elected by cumulative voting. This allows minority shareholders to be represented on the board