Purdue LS185 Unit 8 Quiz Latest 2019 April

LS185 Introduction to American Jurisprudence

Unit 8 Quiz

Question 1 A sole proprietorship is a business owned by (1 point):

Question options:

1) one or more persons and is not incorporated.

2) one person.

3) one person and is incorporated.

4) one or more persons, with one person who operates it.

Question 2 A partnership is a business that:

Question options:

1) is owned by more than one person and is incorporated.

2) is owned by two persons and is not incorporated.

3) is owned by two or more persons and is not incorporated.

4) requires all profits and losses to be borne equally.

   Question 3 Corporations:

Question options:

1) may be owned by one or more than one person.

2) may not be owned by only one person.

3) must be owned by a person different from the person who operates it.

4) must be owned and operated by the same persons.

Question 4 A business that ends automatically with a change in the only member of ownership is a:

Question options:

1) partnership.

2) sole proprietorship.

3) general partnership

4) corporation.

Question 5 A business in which one or more owners is not permitted to have input into the regular operations is a:

Question options:

1) general corporation.

2) limited partnership.                             

3) general partnership.

4) sole proprietorship.

 Question 6 6 An agency occurs when one person:

Question options:

1) has authority to act on behalf of another.

2) acts on behalf of his or her own sole proprietorship.

3) has authority to act in nonlegally binding ways for another.

4) All of the above

Question 7 Agency can be created:

Question options:

1) by express conduct.

2) by implied conduct.

3) after the party acts on behalf of another.

4) All of the above

Question 8 Agency can be used in:

Question options:

1) partnerships.

2) corporations.

3) sole proprietorships.

4) All of the above

Question 9 Inherent authority allows the agent to exceed the authority of the principal:

Question options:

1) when good opportunities arise.

2) for that which is reasonably necessary to accomplish the object of the agency.

3) only when specifically granted permission in advance.

4) None of the above

Question 10 The theory of respondeat superior generally:

Question options:

1) describes the legal responsibilities of the principal in an agency relationship.

2) limits the duties of the agent in an agency relationship.

3) is not related in any way to the concept of agency.

4) applies only in tort cases.

  Question 11 A corporation’s legal status:

Question options:

1) ends on the date stated in articles of incorporation unless renewed.

2) ends on death of the primary shareholder.

3) has no specific lifespan at its inception.

4) ends on the date established by the secretary of state when the articles are filed.                                         

Question 12 On dissolution, a partnership requires:

Question options:

1) partners to share losses equally.

2) limited partners to assist in payment of debt of the partnership.

3) payment of debts before distribution of assets.

4) None of the above

Question 13 On a resolution to dissolve, a corporation:

Question options:

1) may continue to do business for 180 days.

2) must cease all new business immediately.

3) must cease all business of any nature immediately.

4) may continue to do regular business activity until all creditors are paid.    

Question 14 Limited partners must have:

Question options:

1) less than 50 percent ownership.

2) less than 50 percent control of daily operations.

3) less than 50 percent responsibility for debts.

4) no control of daily operations.

Question 15 A bankruptcy filing by a business requires:

Question options:

1) dissolution of the business.

2) cessation of business activities until the bankruptcy is concluded.

3) creditors to cease collection attempts.

4) None of the above

Question 16 Sole proprietorships can be:

Question options:

1) sold.

2) inherited.

3) granted by gift.                           

4)None of the above

 Question 17 A de jure corporation has made:

Question options:

1) good faith efforts to maintain legal corporate status.

2) all necessary steps to maintain legal corporate status.

3) none of the necessary steps to maintain legal corporate status.

4) all necessary steps to create a limited liability company.

Question 18 Liquidation is the process of:

Question options:

1) reducing assets to cash.

2) accumulating capital through sale of stock.

3) reducing cash to purchase assets necessary to start up business.

4) converting a partnership to a corporation.

Question 19 Limited liability companies are:

Question options:

1) synonymous with limited partnerships.

2) a form of corporation.

3) not a type of legal entity

4) the same as a general corporation that limits liability of shareholders.

Question 20 Agency by ratification occurs:

Question options:

1) only in cases of corporations.

2) before the agent acts on behalf of the principal.

3) after the agent acts on behalf of the principal.

4) when the principal releases the agent from fiduciary duties.