Blog

Absent a partnership agreement in a limited partnership, profits and losses are allocated among the partners

Stevie issues a negotiable promissory note to Bo in exchange for Bo’s promise to build an addition to Stevie’s home. The promissory note indicates this reason when Bo negotiates it to Willow for value. Can Willow be a holder in due course? 

Which of the following best describes a certified check

A type of unincorporated business association consisting of two or more persons who co-own a business for profit. Formed without any formality and does not require documents to be filed. 

Handwritten words supersede contradicting typewritten words in negotiable instruments.

Notes and certificates of deposit are orders to pay money to a third person.

Regarding the capital stock structure of a corporation, The holders of these type of securities do not have an ownership interest in the corporation.  These securities are funds borrowed by the corporation from outside investors with the promise to repay (Hint: this creates a Debtor-Creditor relationship between the corporation and the holder of the security). 

Which of the following is not one of the attributes of a corporation?

A violation of the Economic Espionage Act occurs when there is a trade secret and (1) an employee wrongfully uses or discloses it or (2) a competitor wrongfully obtains it.

When a shareholder sells the stock of the corporation, the ownership of the corporation changes, and a new corporation is formed.