BLAW 3310 Exam 3 Questions And Answers 100%Solved
SOLE PROPRIETORSHIP - correct answer...person doing business for himself
ADVANTAGES AND DISADVANTAGES OF SOLE PROPRIETORSHIP - correct answer...freedom, control, full liability
PARTNERSHIP - correct answer...two or more persons carrying on ...
BLAW 3310 Exam 3 Questions And
Answers 100%Solved
SOLE PROPRIETORSHIP - correct answer...person doing business for himself
ADVANTAGES AND DISADVANTAGES OF SOLE PROPRIETORSHIP - correct
answer...freedom, control, full liability
PARTNERSHIP - correct answer...two or more persons carrying on business as owners
for profit; must INFER that partnership exists; individual partner can make decisions on
basic things, but ALL decide and agree on extraordinary things
LIMITED PARTNERSHIP - correct answer...at least one general partner and at least
one limited partner
OPERATIVE ACT TO FORM CORPORATION - correct answer...filing document
(Articles of Incorporation) with Secretary of State
BYLAWS - correct answer...rules that regulate and govern the internal operations of the
corporation
RIGHTS OF CORPORATIONS - correct answer...free speech, free from search and
seizure without warrant
RIGHT CORPORATION DOES NOT HAVE - correct answer...5th amendment self
incrimination
WHAT FRANCHISOR HAS TO DO - correct answer...must give lots of info to
franchisee; financial returns
FTC FRANCHISE RULE - correct answer...franchisor must give franchisee detailed info
AT LEAST 10 DAYS PRIOR: names, address, phone, responsibilities of franchisor and
franchisee, number of franchisees and how many gone out of business
NOTE - correct answer..."I PROMIES to pay"; TWO parties, maker signs it, payee is to
whom it is made to
DRAFT - correct answer..."pay"; THREE parties drawer (signs it), payee (to whom it is
made payable), drawee (check=bank; non-check=whoever you're directing to pay the
money)
MAKER - correct answer...the one who signs on a note
DRAWER - correct answer...orders drawee to pay payee
AGRADESOLUTIONS
, IF SAYS "PAY TO THE ORDER OF" - correct answer...person to whom it's made
payable must SIGN it, then DELIVER
IF SAYS "PAYABLE TO CASH/BEARER/NOBODY IN PARTICULAR" - correct
answer...this is bearer instrument, JUST DELIVER IT, no sign
HOLDERS IN DUE COURSE (HDC) - correct answer...parties who receive instruments
negotiated to them: VALUE, GOOD FAITH, AND NO KNOWLEDGE OF ANY CLAIMS
OR DEFENSES against the instrument
CASHIER'S CHECK - correct answer...bank draws check payable on itself; favored
because it's as good as cash
SURETY - correct answer...i'll pay regardless
GUARANTOR - correct answer...i'll pay if the party who's supposed to does not
IF YOU DO HAVE TO PAY (AS SURETY/GUARANTOR) - correct answer...you can go
against the party who agreed to pay the debt
ATTACHMENT - correct answer...creation of security interest in favor of creditor; arises
in PERSONAL property, then you have rights to the collateral
PERFECTION - correct answer...when creditors want to let people know of their
security interest; "telling the world"; businesses will file financing statements to let world
know about their security interest
PERFECTION: CONSUMER GOODS - correct answer...take possession of them
FLOATING LIEN - correct answer...any new inventory bought is still subject to the
bank's lien
EXCEPTION TO SECURITY INTEREST - correct answer...when you buy something
free from the security interest (ex. buying a car) the car is pledged to the bank, but when
you BUY it, it's free of that lien - buyer in the ordinary course of business
BUYERS IN ORDINARY COURSE OF BUSINESS - correct answer...they do not have
to worry about liens
MECHANIC'S LIEN - correct answer...someone who works on real estate: they can
place a lien on the property for unpaid bills
CAPTER 7 BANKRUPTCY - correct answer...liquidation bankruptcy; all the nonexempt
assets sold and the cash is used to pay off creditors
AGRADESOLUTIONS
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