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Partners have a fiduciary relationship with each other




1. Partners have a fiduciary relationship with each other. Accordingly, a partner;a. May take advantage of a business opportunity within the scope of the partnership enterprise if the partnership agreement will terminate before the benefit will be received;b. May engage in a business that competes with the partnership if it is operated with his/her own resources;c. Must exercise a degree of care and skill as a professional;d. May not earn a secret profit in dealings with the partnership or partners;2. Which of the following documents would most likely contain specific rules for the management of a business corporation?;a. Bylaws;b. Articles of incorporation;c. Certificate of authority;d. Shareholder?s agreement;3. A general partner will not be personally liable for which of the following acts or transactions?;a. A personal mortgage loan obtained by one of the other partners on his/her residence to which that partner, without authority, signed the partnership name on the note;b. The gross negligence of one of the partnership?s employees while carrying out the partnership business;c. A contract entered into by the partnership in which the other partners agree among themselves to hold the general partner harmless;d. A contract entered into by the majority of the other partners but to which the general partner objects;4. Lobo Manufacturing, Inc. is incorporated under the laws of New Mexico. Its principal place of business is in California, and it has permanent sales offices in several other states. Under the circumstances, which of the following is true?;a. California may validly demand that Lobo incorporate under the laws of the State of California;b. California may prevent Lobo from operating as a corporation if the laws of California differ regarding organization and conduct of the corporation?s internal affairs;c. Lobo must obtain a certificate of authority to transact business in California and the other states in which it does business;d. Lobo is a foreign corporation in California, but not in the other states;5. Corporate shareholders are entitled to;a. Participate fully in the management of the corporation;b. Vote on amendments to the articles of incorporation, candidates for the board of directors, and officers;c. File derivative suits to force the corporation to respect certain rights of the shareholders;d. Dissent from decisions on fundamental changes, demand dissenters? rights, and receive the value of their stock in cash


Paper#34949 | Written in 18-Jul-2015

Price : $32