4/7/26, 8:35 AM BLAW 3310 Test 3 Schwemer Exam Questions and answers with verified Answers (Latest Update 2026) UPDATE!! Flashcards | Qui…
BLAW 3310 Test 3 Schwemer Exam Questions and
answers with verified Answers (Latest Update
2026) UPDATE!!
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Terms in this set (56)
CHAPTER 12
LLC and Personal Liability No member or manager is personally liable for all
debts.
Piercing the corporate veil A situation in which courts put aside limited liability
and hold shareholders or directors personally
liable for a corporation's actions or debts.
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Forming a partnership Either an oral or written agreement must be made
between partners. Written is the most formal and
may include terms such as finances, management,
and terms for dissolution.
General Partnership No state filing needed; is created when two or
more partners agree to form. Low startup cost.
Limited Partnership Only general partners have management
capabilities; other partners have limited liability.
Limited Liability Partnership LP created by professional businesses such as
dentists or attorneys.
Things that shareholders vote on Matters that change the corporation's structure or
existence (such as a merger with another firm or an
amendment to the corporation's articles of
incorporation). Shareholders also vote for the
board of directors.
Negative of Sole Proprietorships and Unlimited Liability
Partnerships
Things partners have to agree on Mergers, dissolution, adding new partners, major
business decisions
Business judgement rule Makes directors and managers of corporations
immune from liability when problems result from
honest mistakes in judgement, so long as there is a
reasonable basis for the decisions.
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BLAW 3310 Test 3 Schwemer Exam Questions and
answers with verified Answers (Latest Update
2026) UPDATE!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Terms in this set (56)
CHAPTER 12
LLC and Personal Liability No member or manager is personally liable for all
debts.
Piercing the corporate veil A situation in which courts put aside limited liability
and hold shareholders or directors personally
liable for a corporation's actions or debts.
https://quizlet.com/1164803635/blaw-3310-test-3-schwemer-exam-questions-and-answers-with-verified-answers-latest-update-2026-update-flash-card… 1/9
, 4/7/26, 8:35 AM BLAW 3310 Test 3 Schwemer Exam Questions and answers with verified Answers (Latest Update 2026) UPDATE!! Flashcards | Qui…
Forming a partnership Either an oral or written agreement must be made
between partners. Written is the most formal and
may include terms such as finances, management,
and terms for dissolution.
General Partnership No state filing needed; is created when two or
more partners agree to form. Low startup cost.
Limited Partnership Only general partners have management
capabilities; other partners have limited liability.
Limited Liability Partnership LP created by professional businesses such as
dentists or attorneys.
Things that shareholders vote on Matters that change the corporation's structure or
existence (such as a merger with another firm or an
amendment to the corporation's articles of
incorporation). Shareholders also vote for the
board of directors.
Negative of Sole Proprietorships and Unlimited Liability
Partnerships
Things partners have to agree on Mergers, dissolution, adding new partners, major
business decisions
Business judgement rule Makes directors and managers of corporations
immune from liability when problems result from
honest mistakes in judgement, so long as there is a
reasonable basis for the decisions.
https://quizlet.com/1164803635/blaw-3310-test-3-schwemer-exam-questions-and-answers-with-verified-answers-latest-update-2026-update-flash-card… 2/9
