Exam (elaborations)
Final Exam for Bus-300 Questions and Answers Latest Update
- Course
- BUS 300
- Institution
- University Of Massachusetts, Amherst
Final Exam for Bus-300 Questions and Answers Latest Update
[Show more]
Content preview
Solution 2024/2025Pepper
Final Exam for Bus-300 Questions and Answers
Latest Update
Shareholders' derivative lawsuit ANS✔✔ A lawsuit brought by a shareholder
on behalf of a corporation against a third party. Often, the third party is an
insider of the corporation, such as an executive officer or director.
Fiduciary Duty ANS✔✔ A person who acts on behalf of another(beneficiary)
and is required to do so with great integrity
Duty of Due Care ANS✔✔ Must act in good faith toward the corporation and
in the manner a reasonably prudent person would wonder the same
circumstances .
Due care: refers to the effort made by an ordinarily prudent or reasonable
party to avoid harm to another, taking the circumstances into account. It
refers to the level of judgment, care, prudence, determination, and activity
that a person would reasonably be expected to do under particular
circumstances.
Formation and non-tax costs ANS✔✔ The method of and costs related to
bringing a business form into existence.
Management Structure ANS✔✔ The degree to which control is centralized in
a hierarchical structure or is dispersed among owners
, Solution 2024/2025
Pepper
Limited Liability ANS✔✔ The extent to which business owners are personally
liable for business obligations
Transferability of ownership interests ANS✔✔ Whether the business owners
can transfer their interests without state law restricts
Duration of existence ANS✔✔ The events, including those impacting the
business owners which will end the business entity's existence.
Taxes ANS✔✔ The way each business form affects the income tax treatment
of the business and its owners
Capital Structure ANS✔✔ The impact of the business form on the
organization's ability to access additional capital.
Exemptions ANS✔✔ Exempt securities and exempt transactions do not
require registration with the SEC. The most common exempt securities are
those issued by governments, charities, educational institutions, and
financial institutions such as banks and insurance companies.
False or Misleading Statements in Required Filings-1933 Act Section 11
ANS✔✔ Perhaps the greatest deterrent to misconduct in the securities law is
the civil liability that can be imposed on wrongdoers by harmed investors.
Reliance by the plaintiff on the false or misleading statements is presumed
False or Misleading Statements in Required Filings-1934 Act Section 18
ANS✔✔ The plaintiff must prove that he or she relied on the statements
, Solution 2024/2025
Pepper
Business Judgement Rule ANS✔✔ A decision made by a loyal and informed
board will not be overturned unless it cannot be attributed to any rational
business purpose
Liquidation ANS✔✔ Satisfy the creditors,distribute remaining assets to
shareholders
Article of incorporation ANS✔✔ Document that need to file if you want to
operate a corporation
Double Taxation ANS✔✔ Corporation pays taxes
Shareholders get dividends- they are taxed on those again
Partnerships ANS✔✔ 2 or more persons who carry on a business as co-
ownership
Joint and several liability ANS✔✔ Equal liability-to protect the opposite
party-who the company owes money to
Sole Proprietorships ANS✔✔ -Single individual
-Unlimited Liability(disadvantage)
-Profit/loss flows through to sole proprietor's return
Limited Partnerships ANS✔✔ -Contribute capital but do not participate in
control, must file certificate of limited partnership
-Comprised of at least 1 general partner and 1 or more limited partners
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52928 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now