11. The primary difference between general and limited partnerships
is the limitation on the
A. number of partners.
B. liability of the partners.
C. number of agents.
D. amount of money the partnership
12. The Securities and Exchange Act of 1934 focuses primarily upon
A. divulging information to investors.
B. ensuring that investors don’t lose their investments
C. prohibiting deceptive practices
regarding securities trading.
D. ensuring that investors make informed decisions about securities trading.
13. Freddie and Richard are law partners. After 25 years in the partnership, Richard dies of
old age. The partnership should be terminated due to
A. acts of the partners. C. judicial decree.B. operation of law. D. act of God.
14. Stuart and Cole enter a business
venture together in which they both agree to contribute
funds, money, and time to a sporting goods store. Furthermore, the two agree
to equally split any and all profits. Stuart and Cole have entered into a
A. sole proprietorship. C. limited liability company.
. D. partnership.
15. A Company is a new company just recently incorporated. The company has a board of
directors, officers, and shareholders
. Which of the following is true about this set of
A. The directors and officers are primarily responsible for the management of the
B. The shareholders are primarily responsible for the management of the corporation.
C. The officers are solely responsible for the management of the corporation.
D. Both the shareholders and the directors are responsible for the management of