2. Sidney and Nikki are law partners in a general partnership. Nikki decides to take a position at another law firm. Nikki notifies Sidney that she’s leaving the partnership. This set of facts constitutes a dissociation and dissolution by
A. operation of law. B. consent.
C. act of a partner. D. judicial decree.
6. Jennie owns shares in Superstore, Inc. A vote about whether Superstore should expand its operations to China is coming up. Jennie thinks this is a good idea, but she doesn’t own enough shares to control the outcome of the vote. Jennie could increase the chance that the vote will go her way by
A. entering into a pooling agreement.
B. filing a derivative suit.
C. offering to give someone else a proxy. D. making a shareholder proposal.
7. Company I, Inc., and Company II, Inc., are consolidating. Which of the following statements regarding this consolidation is true?
A. Both companies continue and carry on business as usual.
B. One company disappears, and the other company carries on with both businesses. C. Both companies disappear and stop carrying on business.
D. Both companies join and carry on business under a new name.
9. In a general partnership, management decisions are made by A. unanimous vote in all business decisions.
B. majority vote, with each partner having an equal vote.
C. two-thirds votes of the partners.
D. majority vote, with partners votes weighted in proportion to the interest owned.
10. Crawford, Inc., wants to acquire the assets of Toxic Waste, Inc., but Toxic Waste won’t sell. Toxic Waste is a publicly held company with widely dispersed share ownership. What technique can Crawford use to accomplish its goal?
A. Takeover bid
C. Asset acquisition D. Consolidation
13. The difference between a limited partnership and a registered limited liability partnership (RLLP) is that A. an RLLP can have secret partners, while a limited partnership can’t.
B. all partners have limited liability in a limited partnership, but not in an RLLP.
C. a limited partnership can have secret partners, while an RLLP can’t.
D. all partners have limited liability in an RLLP, but not in a limited partnership.
17. Which of the following types of company offers protection for personal liability?
A. Limited liability partnership
B. General partnership C. Term partnership D. Sole proprietorship
19. Crawford, Inc., would like to own some land owned by Toxic Waste, Inc., to build a storage warehouse for inventory. However, Crawford doesn’t want to be responsible for the liabilities of Toxic Waste. The best method of accomplishing Crawford’s goals is
B. asset acquisition. C. merger.
D. stock acquisition.