Question 1

The filing of the articles of incorporation is generally conclusive proof of proper incorporation in:

Accepted Answer

The statutory approach recognizes the filing of the articles of incorporation as conclusive proof of proper incorporation. This means that once the articles are filed with the appropriate state agency, the corporation is considered officially incorporated and recognized as a legal entity. This approach differs from the common law approach, which requires additional factors, such as the existence of a board of directors and adherence to corporate formalities, to determine proper incorporation. The publicly-held and parent-subsidiary approaches are not relevant to this question.

Question 2

Which of the following events triggers dissolution?

Accepted Answer

All three events listed (expiration of the time period, withdrawal of a general partner, and decree of judicial dissolution) can trigger dissolution of a partnership.

Question 3

The formation of a partnership requires which of the following?

Accepted Answer

All of the options are requirements for the formation of a partnership. The formation of a partnership involves two or more persons with legal capacity who agree to become partners for a business for profit, and co-ownership includes sharing of profits, losses, and control of the business.

Question 4

Which one is created to administer a unit of local civil government or one created by the United States to conduct business?

Accepted Answer

Public corporations are created by the government to administer a unit of local civil government or to conduct business on behalf of the government. The other options do not necessarily have ties to government entities.

Question 5

Which of the following is NOT the type of partners?

Accepted Answer

There is no such term as legal partners in partnership law. The three main types of partners are general partners, limited partners, and dormant partners.

Question 6

Which of the following is NOT the type of debt securities?

Accepted Answer

The answer of Which of the following is NOT the...

Question 7

Dissolution by Operation of Law a partnership is dissolved by operation of law upon:

Accepted Answer

All of the above events (death of a partner, bankruptcy of a partner or of the partnership, subsequent illegality of the partnership) lead to the automatic dissolution of the partnership by operation of law.

Question 8

What entitles shareholders to multiply the number of votes they are entitled to cast by the number of directors fro whom they are entitled to vote and to cast the product for a single candidate?

Accepted Answer

This is known as cumulative voting, which allows shareholders to distribute their votes among multiple candidates or cast all of their votes for a single candidate, depending on their preference. This gives minority shareholders a better chance of electing a director to the board.

Question 9

One who opposes a fundamental change and has the right to receive the fair value of his shares is:

Accepted Answer

A dissenting shareholder is one who opposes a fundamental change such as a merger or acquisition and has the right to receive the fair value of their shares. The other options do not fit the description. A) Authorized Business shareholder is not related to this scenario. B) Shareholder Merger is not the correct term for this situation. D) Board of Shareholder Director is not an individual shareholder who can oppose a fundamental change.

Question 10

Issuance of shares defines:

Accepted Answer

Issuance of shares refers to the creation and sale of shares of stock by a corporation. Shares represent a proportionate ownership interest in the corporation and are a type of equity security, which is a source of capital that creates an ownership interest in the corporation. Treasury stock, on the other hand, refers to shares that have been reacquired by the corporation and are held in its own treasury. Therefore, all of the choices (A, B, and C) are correct.

Question 11

Completing unfinished business, collecting debts, and distributing assets to creditors and partners is called:

Accepted Answer

Liquidation is the process of selling off assets to pay creditors and distribute remaining proceeds to partners or owners. Bankruptcy and insolvency are broader terms that may involve liquidation, but can also involve restructuring debts or other actions to avoid liquidation.

Question 12

What brought by a shareholder or a class of shareholders against the corporation based upon the ownership of shares?

Accepted Answer

The answer of What brought by a shareholder or a...

Question 13

What pertains to the availability, production, and distribution of resources in a society?

Accepted Answer

The availability, production, and distribution of resources are all economic forces. Social forces may influence economic forces, but they do not directly pertain to them. Political forces can have an impact on economic forces, but they do not solely pertain to them. Cost-effective forces are a subset of economic forces and do not cover the full scope of resource availability, production, and distribution in a society.

Question 14

A separateness of corporation gives it which of the following advantages?

Accepted Answer

A separateness of corporation gives it all of the above advantages. Being a separate legal entity allows a corporation to continue after its original owners and managers are deceased. Ownership interests can be divided into shares of stock, which makes it easier to raise capital and transfer ownership. Additionally, a corporation offers its owners limited liability, meaning they are not personally responsible for the debts and obligations of the corporation beyond their investment in the company.

Question 15

Organizations that would be managed on an impersonal, rational basis, this form of organization is called:

Accepted Answer

Bureaucracy is a form of organization that operates on an impersonal, rational basis. It is characterized by clear hierarchy, specialized roles, standardized procedures, and a merit-based system of advancement. This type of organization is often associated with government agencies and large corporations.

Question 16

Which authority is reasonably deduced from the nature of the partnership, the terms of the partnership agreement, or the relations of the partners?

Accepted Answer

Actual Applied Authority is deduced from the nature of the partnership, the terms of the partnership agreement, or the relations of the partners.

Question 17

The corporate charter includes which of the following factor?

Accepted Answer

The corporate charter includes all of the above factors - types of activities it will pursue, amount of capital stock, and number of directors. The charter is essentially the legal document that establishes the corporation and outlines the basic operating details.

Question 18

A field that focus on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling is known as:

Accepted Answer

The administrative principle is a field that focuses on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling. The other options, Unity of command, managerial fist, and decision-making process, do not encompass all of these functions and are not as holistic in their approach to organizational management.

Question 19

Minimum number necessary to be present at a meeting in order to transact business is called:

Accepted Answer

A quorum is the minimum number of members who must be present at a meeting in order for business to be transacted. Without a quorum, decisions made by those present may be invalid or have no legal effect.

Question 20

The change in the relation of partners caused by any partner's ceasing to be associated with the carrying on of the business is called:

Accepted Answer

Dissolution is the correct term used when a partner ceases to be associated with the business. It refers to the change in the relation of partners and can occur due to death, retirement, expulsion, or insanity of a partner. Disbanding implies the complete termination of the business, which may not necessarily occur in the case of dissolution. Conclusion and suspension are not relevant in this context.

Exam 1: Certified Business Manager