Business Law - Exam 4 - Review Game 2

1

100

a significant advantage of a sole proprietorship compared to other business forms

Simplicity in decision-making and management

200

In a manager-managed LLC,_______________ have direct authority over the day-to-day operations of the business.

managers, not members

300

In a limited partnership, ____________________ DO NOT  have limited personal liability for the partnership's debts.

general partners

400

Corporations have______________ and can continue to exist even if ownership changes.

perpetual existence

500

What is not a primary consideration for the corporate governance strategy of a business?

profitability

2

100

In a ____________, the owner has unlimited personal liability for the business's debts.

sole proprietorship

200

One of the benefits of a limited liability company (LLC) is that it provides limited liability for all members, similar to_______________________.

a corporation

300

Who makes the final decision to approve the merger?

shareholders

400

The __________________________ was enacted in response to corporate accounting scandals and aims to improve corporate governance and financial reporting.

Sarbanes-Oxley Act of 2002

500

Possession of monopoly power and misuse of that power through monopolistic acts, is a requirement to establish monopolization under this act.

Sherman Act

3

100

A limited liability company (LLC) can have______ number of members.

unlimited

200

________________is a separate legal entity from its owners (shareholders).

A corporation

300

1. Why are limited partnerships, limited liability partnerships, Limited Liability Companies and corporations required to have a specific indication of their business structure (such as “LP,” “LLC,” and “Inc.”) as part of their official business names?

Let others know of limited liability

400

Where competitors agree to set prices together, is considered a per se violation of antitrust laws.

Price fixing

500

What is the main objective of antitrust laws?

To promote competition and prevent monopolistic behavior

4

100

A sole proprietorship can have _____________unrelated individuals as owners.

one

200

Two companies plan to combine their business operations. The companies plan to establish a joint holding company that will consolidate and own the two existing businesses. This is an example of a(n)

merger

300

A _______ is subject to insider trading restrictions even if they did not receive the information while they were employed by the business.

tippee

400

Antitrust laws apply to______ corporations and also impacts  _______ businesses.

large    small

500

Which of the following practices may be analyzed under the Rule of Reason rather than condemned per se under antitrust laws

Exchange of information between competitors not related to pricing

5

100

In a limited liability partnership (LLP), which partners have limited liability for the partnership's debts?

ALL - General and Limited

200

What is the main purpose of the Securities Act of 1933?

To require full disclosure of information for new securities offerings

300

The Federal Trade Commission requires franchisors to provide certain information to potential franchisees prior to entering into a franchise arrangement. This document is known as the

Franchise Disclosure Document

400

Which legal doctrine is used to determine whether a business practice that is not illegal by its own nature restrains trade and violates antitrust laws?

Rule of Reason

500

Agreements or practices that restrain competition between rival firms operating at the same level of the production or distribution process

Horizontal Restraint of Trade