BLAW 3310 Test 3 Schwemer Study Guide with Complete Solutions

BLAW 3310 Test 3 Schwemer Study Guide with Complete Solutions LLC and Personal Liability - Answer️️ -No member or manager is personally liable for all debts. Piercing the corporate veil - Answer️️ -A situation in which courts put aside limited liability and hold shareholders or directors personally liable for a corporation's actions or debts. Forming a partnership - Answer️️ -Either an oral or written agreement must be made between partners. Written is the most formal and may include terms such as finances, management, and terms for dissolution. General Partnership - Answer️️ -No state filing needed; is created when two or more partners agree to form. Low startup cost. Limited Partnership - Answer️️ -Only general partners have management capabilities; other partners have limited liability. Limited Liability Partnership - Answer️️ -LP created by professional businesses such as dentists or attorneys. Things that shareholders vote on - Answer️️ -Matters that change the corporation's structure or existence (such as a merger with another firm or ©SOPHIABENNET@ Thursday, August 22, 2024 10:21 AM Business Law : University of Texas Arlington 2 an amendment to the corporation's articles of incorporation). Shareholders also vote for the board of directors. Negative of Sole Proprietorships and Partnerships - Answer️️ -Unlimited Liability Things partners have to agree on - Answer️️ -Mergers, dissolution, adding new partners, major business decisions Business judgement rule - Answer️️ -Makes directors and managers of corporations immune from liability when problems result from honest mistakes in judgement, so long as there is a reasonable basis for the decisions. Proxy - Answer️️ -A written authorization by shareholders to cast their votes, so that they do not have to show up in person. CHAPTER 13 - Answer️️ - The party that is paid is the _______ - Answer️️ -Payee How many parties are on promissory notes? - Answer️️ -Two: The maker and the payee Bill of Exchange - Answer️️ -International Draft Sight Draft - Answer️️ -Draft that requires immediate payment ©SOPHIABENNET@ Thursday, August 22, 2024 10:21 AM Business Law : University of Texas Arlington 3 Suretyship - Answer️️ -A guarantee that debts will be paid, often given by a third party. The third party (surety) agrees to pay if the debtor will not. A guarantor is a third party that may only be obligated to pay under certain circumstances. Floating Lien - Answer️️ -A security interest in a group of property that remains in place even after the exact items in that group of property change Mortagor - Answer️️ -Debtor Mortgagee - Answer️️ -Creditor Who is able to file for Chapter 13 bankruptcy? - Answer️️ -Individuals Debts you can't get out of when you declare bankruptcy - Answer️️ -o Alimony and child support payments o Back taxes o Most student loans o Some debts incurred immediately before filing bankruptcy o Debts incurred by fraud against the creditors o Fines owed to the government ©SOPHIABENNET@ Thursday, August 22, 2024 10:21 AM Business Law : University of Texas Arlington 4 Chapter 11 Bankruptcy - Answer️️ -Applies to businesses; debts are reorganized and no liquidation occurs During a bankruptcy, who in the company is left in charge? - Answer️️ - Managers CHAPTER 14 - Answer️️ - Agency by Operation of Law - Answer️️ -Sometimes, an agent is unable to reach the principal and has to make a rational decision qu