FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Business Organizations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

A limited liability partnership allows professionals to avoid personal liability for the malpractice of other partners.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

Because a franchisor's termination of a franchise can adversely affect a franchisee,much franchise litigation involves claims of wrongful termination.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

As the promoter of Glassworks LLC,Hans enters into a contract with Interstate Transport Company.Once formed,Glassworks can

Otto is a general partner in Port Exports,a limited partnership.By participating in the firm's management,Otto is liable for its obligations

Unlike a sole proprietorship or a partnership,a limited liability company cannot be held liable for a loss caused by the wrongful acts of its members.

If a limited liability company is not meeting the economic purpose for which it was established,a court may order the dissolution of the firm.

Beri owns and operates City Delivery Service as a sole proprietorship.When she dies,the business will automatically

In a limited partnership,every partner has full responsibility for the management of the partnership.

Dissociation terminates some of the rights of the dissociated partner,requires the firm to buy his or her interest,and alters the parties' liability to third parties.

Without creating a separate business organization,Rey starts up Street Cruisers,a pre-owned auto sales enterprise.This enterprise is

Accounting LLC is a member-managed limited liability company.Unless the members have agreed otherwise,all decisions with respect to the firm's business are made by

The proprietor pays only personal income taxes on a sole proprietorship's profits.

Sam buys a franchise from Taco Loco Inc.This relationship,like all other franchise relationships,is governed by

Limited legal liability can be an advantage for a small business wishing to raise capital.

In most states,in a dispute on a partnership matter,a third party cannot sue an individual partner but must file an action against the entire firm.

In a limited partnership,a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

Among three partners,unless they agree otherwise,unanimous consent is required to manage the business of the partnership.

Bob buys a Club Fitness,Inc. ,franchise,which the franchisor later terminates.In determining whether the termination was proper,a court will generally

Sebastian was the manager of Thai Bistro,a restaurant specializing in Southeast Asian foods.Sebastian opened a bank account in Thai Bistro's name,signing the account signature card as "owner." Umeko,who was often at Thai Bistro and had free access to its office,told others that she was "an owner" and "a partner." She also opened a bank account in Thai Bistro's name,and signed the account signature card as "owner." Sebastian told Vijay,the owner of Wong Noodles,Inc. ,that Umeko was a member of a partnership that owned Thai Bistro.On this basis,Wong Noodles delivered its goods to Thai Bistro on credit.In fact,Thai Bistro was owned by a corporation.When the unpaid account totaled more than $10,000,Wong Noodles filed a suit against Umeko to collect.On what basis might Umeko be liable for the debt?

Because each type of franchise relationship is similar,franchise contracts tend to be similar.