BL Final Review MC Part 4 Question Preview (ID: 22983)


Q 81-95. TEACHERS: click here for quick copy question ID numbers.

In most states, to create a corporation
a) an application for incorporation must be filed to the property state official
b) the promoters must bind the organization that is to become a corporation
c) all of the incorporators must have legal capacity
d) all of these

Money to buy equipment, supplies, and inventory; to hire labor; and to pay other expenses of a corporation come from
a) the initial sale of stock
b) fundraisers
c) donations received
d) the original incorporators

An eligibility requirement for an S corporation would be
a) none of these
b) two or more classes of stock
c) unlimited number of shareholders
d) both of these

A partnership may be dissolved by
a) all of these
b) agreement of the parties
c) bankruptcy or death of any partner
d) all of these

A partner who invests more capital brings in more business, or works longer and harder than his or her associates is
a) either extra pay or more profits only if all other partners agree
b) entitled to extra pay
c) entitled to a larger share of the profits
d) both extra pay and a larger share of the profits

Shareholders have the power to vote on
a) all of these
b) changing the corporate articles
c) merging with another company
d) selling out in a corporate takeover

Advantages of a corporation would not include
a) taxes
b) perpetual life
c) professional management
d) all of these

Rights of the shareholder would not include the right to
a) a proportionate share of the profits
b) inspect corporate books of account
c) participate directly in the management of the corporation
d) share in the distribution of the capital if the corporation is dissolved

The governmental agency that regulates stock exchanges is
a) Securities and Exchange Commission (SEC)
b) Federal Trade Commission (FTC)
c) Federal Communications Commission (FCC)
d) Federal Reserve System's Board of Governors

Unconditional order to pay money are
a) checks
b) certificates of deposit
c) IOUs
d) promissory notes

A draft payable on a set date is called
a) a time draft
b) a sight draft
c) a check
d) an IOU

Commercial paper can be discharged by
a) fraudulent alterations
b) cancellation resulting from fraud
c) mistakenly marking a note paid and returning it to the maker
d) all of these

Certificates of deposit and promissory notes are
a) unconditional promises to pay money
b) unconditional orders to pay money
c) time drafts
d) bills of exchange

When personal property is offered as security and so indicated on the face of the note, the paper is a
a) collateral note
b) mortgage note
c) personal note
d) promissory note

An instrument is still negotiable if it requires that the amount be paid
a) all of these
b) by installment
c) with costs of collection
d) with interest

Play Games with the Questions above at ReviewGameZone.com
To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 22983 in the upper right hand corner or click here.

TEACHERS / EDUCATORS
Log In
| Sign Up / Register