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34) Which body of law governs the rules regarding the offering or trading of ownership interests in corporations?A) Federal law.B) The Revised Model Business Corporation Act.C) State law.D) Common law.35) Which of the following is not a characteristic of an LLC?
36) Kante is an underwriter who acted as a third party conducting a sale of securities between Fox Co. and an investor. After the sale, it is discovered that the disclosures made by Fox Co. were fraudulent. The investor has sued both Fox Co. and Kante. What is Kante's best defense to avoid liability?37) CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name. The loan is payable with interest over five years. After paying on the loan regularly for two years, the business falters due to the economy, and CJ and Danny default on the loan. Their business has no assets. Which of the following statements best describes CJ and Danny's liability in this case?38) When does an initial public offering (IPO) occur?A) When a public corporation seeks to become a professional corporation.B) When a for-profit corporation seeks to become a nonprofit corporation.C) When a privately held corporation seeks to become a publicly held corporation.D) When a publicly held corporation seeks to become a privately held corporation.