LAW 531 Week 1 Knowledge Check

1374 WordsOct 31, 20136 Pages
8/19/13 9:24 PM Questions 1. Correct 2. Correct 3. Correct 4. Correct 5. Correct 6. Correct 7. Correct 8. Correct 9. Correct 10. Correct 11. Correct 12. Correct 13. Correct 14. Correct 15. Correct 16. Incorrect Your answers : 15/16 (94%) Submitted on Aug 19, 2013, 9:23 PM 1 Which of the following is true of a corporation? Corporation owners are only taxed once on earnings. A corporation terminates upon the death of an owner. A corporation is a separate legal entity. Corporation shareholders are subject to unlimited personal liability. Correct 2 There are two general partners, each of whom contributes $5,000 in capital to a limited partnership. There are two limited partners, each of whom contributes…show more content…
The choice is determined solely by the amount of capital invested. Correct 9 Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute?…RIS:43590667&serverTime=2013-08-20T04:23:56.746+00:00#/view/result Page 3 of 6 8/19/13 9:24 PM Minitrial Arbitration Conciliation Mediation Correct 10 Fred and Ginger are general partners in a business. They decide to purchase a building for the partnership. Ginger will put up the money for the building, and Fred will complete the remodeling. While inspecting the building, Fred is informed that the building is packed full of asbestos. He fails to tell Ginger of the presence of the substance. They buy the building and go into business. During the remodeling of the building, people from the neighborhood begin complaining about the dust from the building. Some of them even threaten to sue. Who is liable? Fred is liable because he was put on notice of the presence of the substance. Ginger is not liable because she did not have actual knowledge. Neither Ginger nor Fred are liable personally, nor is the partnership, as they did not put the substance in the building. Both Ginger and Fred are liable, regardless of the circumstances, by virtue of the fact that they are partners. Ginger is liable because she is

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