1. A ___________ is a debt instrument, used by a corporation to raise capital, which is not secured by corporate assets pledged for repayment.

a. a promissory note with corporate assets pledged as collateral.

b. corporate bond.

c. corporate debenture.

d. stock share.

2. In a limited liability company with 8 members, who has the authority to manage the entity and bind the LLC to contracts?

a. The LLC statute requires an LLC with multiple members to create a Members Agreement. With no written Agreement, the LLC does not exist and may not do business.

b. The LLC statute provides that all contracts over a certain amount of money must be supported by a unanimous vote of all members.

c. It depends on the rules of the LLC, whether it is a member-managed entity or a manager-manager entity.

d. It depends on the amount of capital contribution each member made. The member paying the most is the manager.

3. A _________ is a business entity that has at least one general partner and at least one limited partner.

a. limited liability company.

b. limited partnership.

c. limited liability partnership.

d. general partnership with limited partners as silent inventors.

4. A promoter is a person who creates a corporation. Which statement below best describes promoter liability?

	a.	Liability on a corporations contract signed before the corporation is formed will depend on who has the most assets, the promoter, or the corporation.
	b.	The promoter is not personally liable on a corporations contract signed before the corporation is formed.
	c.	The promoter and the corporation (once formed) are both automatically liable on a corporations contract signed before the corporation is formed.
	d.	The promoter is personally liable on a corporations contract signed before the corporation is formed.

5. The fiduciary duty of __________ requires a board member to disclose any conflict of interest she has with a corporations business opportunity. She must disclose the conflict and refrain from voting on the deal.

	a.	loyalty
	b.	due diligence
	c.	care
	d.	subordination