Review Business Law Topic 2.2

The first formal step in incorporating a corporation is drafting and filing the__

• articles of incorporation

• company bylaws

• stock certificates

• minutes of incorporation

Directors of a corporation are elected by __

• the state

• the officers

• the shareholdes

• the public

The part of corporate profits paid to a stockholder is called

• stock

• share

• dividend

• interest

Which is not an advantage of corporation?

• continuity

• ease of formation

• limited liability

• ease of transferring ownership

Which of the following bodies has the power to establish general corporate policies in a corporation?

• Officers

• Stockholders

• Auditors

• Board of Directors

Unless otherwise agreed, the partners’ shares of the profits in a partnership are

• based on the amount each partner invested.

• based on the partners' salaries.

• equal

• based on the time each partner devotes to management

To establish a partnership, there always must be a partnership agreement.

• True

• False

Dave and John operated a grocery store as partners. Dave told John not to buy a certain product because it was not selling well. John disregarded Dave’s request and bought a large quantity of the product. Dave refused to pay the bill. Was the partnership obligated to pay for the product?

• Yes

• No

Officers of a corporation are hired by __

• the stockholders

• the directors

• the state

• other officers