MCQS

MCQs



____23.Tony is a general partner in United Amusement, a new partnership. A United debt comes due. Tony is

a.

Not liable for the debt.

b.

Only liable for the debt up to the amount of his capital contribution.

c.

Personally liable only to the extent the other partners do not pay.

d.

Personally liable to the full extent of the debt.

29.Jay is considering forms of business organization for Jay's Designs, an architectural firm. An advantage of a limited liability partnership is that partners can avoid personal liability for

a.

Any partnership obligation.

b.

Only other partners' wrongdoing.

c.

Only partnership obligations that exceed capital contributions.

d.

Only partnership obligations that fall within capital contributions.

____30.Dean buys a franchise from Excel Realty, Inc. In their agreement, Excel may specify

a.

Neither Dean's business form nor its standards of operation.

b.

The business form and the standards of operation.

c.

The business form only.

d.

The standards of operation only.

Q-A restriction on the transferability of shares of stock in Alpha Corporation that Ben, or any other Alpha shareholder, offers for resale is a right of

a.

Definite approval.

b.

Final purchase.

c.

First refusal.

d.

Shareholder appraisal.

Q-The U.C.C. is derived from the Merchant's Code true or false

____12.U.S. Tool Company (UST) manufactures power drills. Ben is injured while using a UST drill and sues the company for product liability based on negligence. To win, Ben must show that

a.

He was in privities of contract with UST.

b.

UST did not use due care with respect to the drill.

c.

UST misrepresented a material fact regarding the drill, on which Ben relied.

d.

None of the above.

____13.Eve, an architect, hires Frank, an accountant, to handle her accounts. Dissatisfied with Frank's work, Eve sues him, alleging negligence. Frank may successfully defend against the suit by proving that he

a.

Did not injure Eve in any way.

b.

Does not know every principle of accounting.

c.

Performed as well as an ordinary person could have.

d.

Performed as well as Eve could have.

____14.Rod, a van driver for Standard Delivery Company, negligently causes ...