Reference no: EM132159202
1. Angela created a corporation for her business, Angela's Apple Pies & More. She is the sole shareholder of the corporation. In her Statement of Information filed about the corporation, Angela is listed as the President/CEO, Treasurer and Secretary. Angela is entitled to hold all of these offices because she is the sole shareholder.
True
False
2. If apparent authority is present, the principal is liable for even the unauthorized acts of the agent.
True
False
3. Alan, a dentist, and his wife Martha, an attorney, can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.
True
False
4. Corporate officers who, in good faith, enter into an ultra vires transaction are not held personally liable.
True
False
5. Note: This question may have more than one correct answer.
The Fair Labor Standards Act (FLSA):
a. allows employers to exempt certain categories of workers from the overtime pay requirements.
b. requires employers to pay employees a minimum wage.
c. applies only to employers with 15 or more employees.
d. absolutely prohibits the employment of children under the age of 14.
6. The guiding principal of federal securities law is:
a. to insure investors have full and accurate information.
b. to promote the issuance of securities.
c. to keep investors from making bad investments.
d. to avoid another stock market crash.