WorksheetsChapter 41
Total questions: 11
Worksheet time: 2mins
An LLC combines the tax advantages of a partnership with the limited liability of a ________.
Sole Proprietorship
Corporation
General Partnership
Non-profit Organization
In a Limited Partnership, if the general partner declares bankruptcy, what is the liability of the limited partners?
Unlimited liability for all debts
Liability limited to their investment
Personal liability for the general partner's debts
No liability as the partnership is dissolved
The personal assets of shareholders in a joint stock company are at risk in the event of the company's debts.
True
False
Which of the following is NOT a way a corporation can be dissolved voluntarily?
By a unanimous shareholder vote
By a court order
By a proposal from the board of directors
By the expiration of the incorporation period
During the winding-up process of a corporation, what happens to the corporate assets?
They are donated to charity.
They are divided equally among the shareholders.
They are converted into cash and distributed according to specific rules.
They are kept by the board of directors.
What is the purpose of notifying creditors during a corporate dissolution?
To inform them of the company's financial situation.
So they can vote on the dissolution.
To allow them to file claims for payment owed by the corporation.
To offer them first dibs on purchasing company assets.
A merger involves the legal combination of two or more corporations. After a merger, both corporations continue to exist.
True
False
The results of a consolidation are the same as those of a merger.
True
False
If shareholders are not unwilling to become shareholders in a corporation that is new or different from the one in which the shareholder originally invested, they have the right to
be paid the fair value of the shares
Be compensated
Receive the additional benefits
When is shareholder approval most likely required for a corporation purchasing assets with stock? (Choose 2)
Whenever the corporation pays for assets with stock
Only if there are not enough authorized unissued shares available
Only if the acquiring corporation's stock is traded on a national stock exchange
Both a and c
Under which circumstance is shareholder approval NOT likely required for a corporation purchasing assets with stock?
If the corporation pays for a small number of assets with a small amount of stock
If the corporation is privately held and not traded on a stock exchange
If there are enough authorized unissued shares available
Both a and b
