LEG 100 Week 10- Exam Questions Fully Solved Latest 2025 (Graded A+)
The advantage to an S corporation is - Answers its treatment of shareholders for income taxation purposes.
To form an LLC, both a charter and an operating agreement must be filed with the Secretary of State in the jurisdiction w...
The advantage to an S corporation is - Answers its treatment of shareholders for income taxation
purposes.
To form an LLC, both a charter and an operating agreement must be filed with the Secretary of State in
the jurisdiction where the business will operate. - Answers False
An organization that does not pay income tax on its profits but passes them through to its owners who
pay the tax at their individual rates is called a - Answers flow-through tax entity.
Limited liability is a major advantage of a partnership as compared to a corporation. - Answers False
All the business forms listed below have limited liability EXCEPT the - Answers general partnership.
Corporations have a distinct advantage over other forms of business organization in the area of taxation.
- Answers False
Corporations have perpetual existence. - Answers True
Lawyers often take the role of the incorporator, signing the charter and delivering it to the proper state
officials. - Answers True
When a corporation accepts legal responsibility for a contract, it is called novation. - Answers False
A business corporation can be incorporated under either state law or federal law. - Answers False
Matt, a shareholder, can run for director by simply placing his name on the company's proxy statement.
- Answers False
Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was incorporated,
Sara signed a contract in the name of Gomo, Inc. to lease a store front. Sara did not tell the other party
that Gomo was not yet formed. Sara is personally liable on the lease. - Answers True
A manager who has engaged in self-dealing has violated the duty of loyalty to the corporation, unless
the self-dealing was entirely fair to the corporation. - Answers True
A director violates the corporate opportunity doctrine if he or she competes with the corporation,
unless the disinterested directors approve of the director's actions. - Answers True
The Truth-in-Lending Act regulates interest rates and the terms of loans. - Answers False
The Fair Debt Collection Practices Act prohibits which of the following practices? - Answers A debt
collector falsely representing himself as a lawyer
The two federal agencies charged with enforcing consumer laws are the Federal Trade Commission and
the Federal Communications Commission. - Answers False
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