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CHBO FINALS EXAM Questions and Answers
CHBO FINALS Questions and Answers
[Show more]CHBO FINALS Questions and Answers
[Show more]Which of the following is a closely-held business organization? 
Ans- Eli Lilly and Company (a large pharma company headquartered in 
Indianapolis). 
Cummins Inc. (a large engine manufacturer headquartered in Columbus, IN). 
Barnes & Thornburg LLP (a large law firm headquartered in Indianapolis). 
...
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Add to cartWhich of the following is a closely-held business organization? 
Ans- Eli Lilly and Company (a large pharma company headquartered in 
Indianapolis). 
Cummins Inc. (a large engine manufacturer headquartered in Columbus, IN). 
Barnes & Thornburg LLP (a large law firm headquartered in Indianapolis). 
...
For Indiana corporations, the occurrence of a Disposition—meaning an Asset 
Sale or Stock Sale—is governed by the statute IC § 23-1-41-2. 
By default, the Board of Directors may approve, without shareholder input, any 
Disposition that is within the Ordinary Course of Business, meaning it le...
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Add to cartFor Indiana corporations, the occurrence of a Disposition—meaning an Asset 
Sale or Stock Sale—is governed by the statute IC § 23-1-41-2. 
By default, the Board of Directors may approve, without shareholder input, any 
Disposition that is within the Ordinary Course of Business, meaning it le...
Barth v. Barth 
Ans- Derivative & Direct Action against Corps. 
Hobby Lobby 
Ans- CBHO are extensions of individuals 
Head v. Henry Tyler Construction Corp. 
Ans- Partners are Jointly and severally liable 
Longhi v. Mazzoni 
Ans- Piercing the corporate veil 
Cantor v. Sunshine Greenery, Inc 
Ans- De...
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Add to cartBarth v. Barth 
Ans- Derivative & Direct Action against Corps. 
Hobby Lobby 
Ans- CBHO are extensions of individuals 
Head v. Henry Tyler Construction Corp. 
Ans- Partners are Jointly and severally liable 
Longhi v. Mazzoni 
Ans- Piercing the corporate veil 
Cantor v. Sunshine Greenery, Inc 
Ans- De...
Closely Held Organization are businesses that are privately held by a "small 
group" of individuals. 
Ans- A. What is a closely held business organization? 
a. Contract obligations: Partners are jointly liable for all partnership debts and 
obligations. 
b. Tort obligations: Partners will be joi...
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Add to cartClosely Held Organization are businesses that are privately held by a "small 
group" of individuals. 
Ans- A. What is a closely held business organization? 
a. Contract obligations: Partners are jointly liable for all partnership debts and 
obligations. 
b. Tort obligations: Partners will be joi...
What are closely held businesses? 
Ans- A small, privately held corporation with only a few shareholders, usually 
family members or other close associates. Shares are not generally traded in 
the securities market. 
Sole Proprietor 
Partnership 
Corporations 
Limited Partnership 
Limited Liabilit...
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Add to cartWhat are closely held businesses? 
Ans- A small, privately held corporation with only a few shareholders, usually 
family members or other close associates. Shares are not generally traded in 
the securities market. 
Sole Proprietor 
Partnership 
Corporations 
Limited Partnership 
Limited Liabilit...
Barth v. Barth (When can a TC treat an action raising Deriv claims as a Direct 
action from a shareholder?) 
Ans- a trial court in its discretion may treat an action raising derivative 
claims as a direct action from an individual shareholder, if it finds that to do so 
will not: 
(1) unfairly ex...
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Add to cartBarth v. Barth (When can a TC treat an action raising Deriv claims as a Direct 
action from a shareholder?) 
Ans- a trial court in its discretion may treat an action raising derivative 
claims as a direct action from an individual shareholder, if it finds that to do so 
will not: 
(1) unfairly ex...
Rationale of Derivative actions 
Ans- 1) avoid multiplicity of actions 
2) protect interests of creditors 
3) assure fair distribution among all interested persons 
8 factors to pierce the corporate veil (Aronson v. Price) 
Ans- 1) undercapitalization 
2) absence of corporate records 
3) fraudul...
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Add to cartRationale of Derivative actions 
Ans- 1) avoid multiplicity of actions 
2) protect interests of creditors 
3) assure fair distribution among all interested persons 
8 factors to pierce the corporate veil (Aronson v. Price) 
Ans- 1) undercapitalization 
2) absence of corporate records 
3) fraudul...
Vicarious liability 
Ans- Legal doctrine under which a party can be held liable for the wrongful 
actions of another party. 
Vicarious liability test 
Ans- did the control of the day-to-day operations of the business reside with 
the agent or principal 
Independant contractor 
Ans- an agent who ha...
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Add to cartVicarious liability 
Ans- Legal doctrine under which a party can be held liable for the wrongful 
actions of another party. 
Vicarious liability test 
Ans- did the control of the day-to-day operations of the business reside with 
the agent or principal 
Independant contractor 
Ans- an agent who ha...
Barth v. Barth 
Ans- Majority rule, however, majority owners have fiduciary duty to minority 
owners and business itself. 
In general, proper procedure for minority to challenge majority is a derivative 
action on behalf of the business. 
Bedrock Principle of Limited Liability 
Ans- Unless otherw...
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Add to cartBarth v. Barth 
Ans- Majority rule, however, majority owners have fiduciary duty to minority 
owners and business itself. 
In general, proper procedure for minority to challenge majority is a derivative 
action on behalf of the business. 
Bedrock Principle of Limited Liability 
Ans- Unless otherw...
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