Please explain why you choose the answer

Jasmine owns 75 percent of the stock of Jasmine Corp.; her ex-wife, Laura owns the rest. Jasmine is the president and controls the board of directors. Jasmine decides she wants to donate to a worthy cause the maximum amount of the corporations substantial income that will be deductible for federal income tax purposes. When she cant find a cause quite worthy enough, she decides to create her own foundation, to be known as the Jasmines Child Foundation (JCF). The purpose of the JCF is to operate an art and music program so that children from homeless shelters can have a safe place to go and activities to participate in when they are not in scho

4. Jasmine explains to Laura that the board of Jasmine Corp. will be unable to declare dividends in the near future because it has determined that it needs to reinvest all of the companys earnings in excess of the intended donation in expanding Jasmine Corp.s facilities. Laura consults you about whether a suit demanding that the board be ordered to pay dividends would be successful. Your advice to her is that:
   1. The boards determination with respect to reinvestment is unlikely to be second-guessed by a court.
   2. The boards determination with respect to the charitable donation in unlikely to be second-guessed by a court.
   3. Both a and b.
5. If the donation is made and Laura brings litigation, which of the following is most likely to be true?
   1. The gift will be found to be a breach of fiduciary duty.
   2. The gift will be found to be ultra vires, an act outside of the authority of the board.
   3. Both a and b.
   4. Neither a nor b.

6. When a principal causes a third party to reasonably believe an agent has authority to act on the principal's behalf, even if the agent does not have such authority, this is known as:

1. repudiation by act.
2. operation of law.
3. anticipatory breach.
4. apparent authority.

Limited partnerships (LPs) share the following characteristics with general partnerships:

1. Unlimited liability for the general partners;
2. The risk of unintended formation;
3. Participatory management;
4. All of the above are characteristics shared by LPs and general partnerships