LS 311 Unit 10 Exam- Kaplan

Unit 10 Final Exam LS311

August 10, 2018

Question 1 points

Forming a limited liability company requires filing articles of organization in a state office.

True

Question 2 points

Like the bylaws of other corporations, the bylaws of Retail Sales, Inc.

were adopted at its first organizational meeting.

Question 3 points

When a majority shareholder breaches her or his fiduciary duty to a minority shareholder, the minority
shareholder can sue for damages.

True

Question 4 points

What type of ownership do shareholders have in a corporation?

An equitable ownership

Question 5 points

Apparent authority exists if a principal causes a third party reasonably to believe that an agent has
authority to act.

True

Question 6 points

Most states limit the duration of a corporation’s existence to 99 years.

False

Question 7 points

Shareholder approval is required when a corporation buys all of the assets of another company.

False

Question 8 points

Which of the following does not involve a director’s duty of loyalty?

Avoiding insider trading



Question 9 points