The board of directors is directly responsible to the stockholders.; True or False

Who has the right to elect the Board of Directors? a. The common shareholders b. The preferred shareholders c. The officers of the corporation d. All shareholders

Limited liability companies are primarily designed to: A. allow a portion of their owners to enjoy limited liability while granting the other portion of their owners control over the entity. B. provide the benefits of the corporate structure only to foreign-based entities. C. spin off a wholly owned subsidiary. D. allow companies to reorganize themselves through the bankruptcy process. E. provide limited liability while avoiding double taxation.

Which is true about a limited partnership (LP)? a. General partners are exposed to liability for all of the businesses’ debts, and limited partners are only exposed to the extent of their investment b. Limited partners are exposed to liability for all of the businesses’ debts, and general partners are only liable to the extent of their investment c. All partners, both general and limited, are exposed to liability for all of the businesses’ debts d. All partners are exposed to liability only to the extent of their investment

James and John are directors of ‘Cakes & Frozen Novelties Company Limited.’ Peter, Paul andDavid are shareholders. The company has been in operation for four years. The company has notmade any profits since its inception but James and John decided to declare dividends from thecompany’s capital reserves. The company has 10 million shares that were not distributed. Jameswent ahead and sold the shares to his wife, who is not currently a member of the company.Peter enquired as to whether or not the company can just purchase the shares issued, as there aremany different types of shares available. Paul noted that this is possible but pointed out thatRedeemable shares have particular features and certain procedures must be followed in order toredeem. He also stated three ways in which the company must finance these redeemable shares.James asked about the effect of the redeemable shares. John was puzzled and asked how acompany can redeem its share capital, especially when there is a…

Briefly explain the liability of:(a) A director of a private limited liability company.(b) A partner of a partnership.(c) A sole trader.(d) A private limited company.

1. Exempt from the registration requirement of the Securities Act of 1933 are offerings of securities  a. made to a small number of knowledgeable investors.     b. issued by for-profit organizations.  c. involving a large dollar amount. d. only for large organizations that are for-profit.    2.  Global Investments is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can a.not become a member but can participate.        b. become a member and participate.c. not become a member or participate. d. Become a member but cannot otherwise participate.      3. Quorum requirements include _________ a. number of decision-makers that must be present before business can be conducted. b. how often decision-makers must meet each year.  c. maximum number of shareholders allowed in for-profit companies.  d. all other answer choices   4. Fiduciary duties of the directors and officers include a.duty of care  b. duty of loyalty  c.…

Explain the basic governance structure of a corporation (i.e., the interrelationship of shareholders, officers, and directors).