Homework Chapter 40
What are the benefits of LLC, LPs and LLLP? What types of businesses would
chose each form? What are the main differences between LPs and LLLPs?
An LLP (Limited Liabily Partnership) look like a partnership whith some expec
Homework Chapter 42
List the three types of defectively formed corporations. What are the characteristics and
consequences of each? What if none of the three types is found to exist? What are the parties'
1. De Jure Corporation: Formed when p
Homework Chapter 43
Exercise: What are the duties that directors and officers owe to a corporation? What is the
business judgment rule? In what circumstances will courts refuse to apply the rule?
1. Duty to Act within Authority
2. Duty of Care
3. Board Op
Chapter 45 - Homework
Exercise: Why was the Securities and Exchange Commission created by Congress?
What are the general purposes of securities regulation?
The Securities and Exchanges Commission was created by Securities Act of 1934
(1934 Act). It is res
Choosing a Form of Business
A. Sole Proprietorship
1. Only one owner, the sole proprietor, who
a. Has the right to make all the management decisions of
b. All the profits are his or hers;
c. Is personally liable for all the obligations an
Duties of Partners to the Partnership and Each Other
A. Interest Adverse to the Partnership
1. May not deal with the partnership when the partner has an
interest (or represents those with an interest) adverse to the
2. A partner may not sec
Homework chapter 41
1) There are three main classes of corporations. Briefly discuss each.
The 3 main classes of corporations are :
A. For Profit Corporations. They include most business corporations and issue stock to
shareholders who invest in the corpo
Exercise: In a voting trust, shareholders transfer their shares to one or more voting
trustees and receive voting trust certificates in exchange. Why would shareholders
make such an agreement?
In voting trusts, shareholders transfer their share