Understanding Business and Personal Law
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Chapter 30: Corporate Regulation and Expansion
      
  1.A winding up always follows a dissolution of a LLC.  
  a.   TRUE  
  b.   FALSE  
      
  2.The Environmental Protection Agency (EPA) is responsible for implementing laws that deal with air, water, and noise pollution.  
  a.   TRUE  
  b.   FALSE  
      
  3.A stock acquisition is also considered a hostile takeover bid.  
  a.   TRUE  
  b.   FALSE  
      
  4.The Securities and Exchange Commission (SEC) prevents the formation of monopolies.  
  a.   TRUE  
  b.   FALSE  
      
  5.The federal government can regulate  
  a.   only businesses that are incorporated.  
  b.   business that does not do business overseas.  
  c.   any business activity that affects interstate commerce.  
  d.   businesses that earn over $500,000 per year.  
      
  6.The Federal Trade Commission Act  
  a.   provides the procedures for companies to merge.  
  b.   requires sellers to treat all buyers equally.  
  c.   prevents businesses from attempting to reduce competition.  
  d.   was designed to protect businesses from the wrongful acts of other businesses.  
      
  7.When a corporation ends  
  a.   the board of directors are the first to get paid.  
  b.   the creditors are the first to get paid.  
  c.   the officers are the first to get paid.  
  d.   the shareholders are the first to be paid.  
      
  8.The members of a limited liability company can initiate its dissolution by two-thirds majority vote.  
  a.   TRUE  
  b.   FALSE  
      
  9.In a stock acquisition, the corporation making the tender offer is referred to as the  
  a.   prospectus.  
  b.   hostile bidder.  
  c.   target.  
  d.   suitor.  
      
  10.In an asset acquisition  
  a.   one corporation agrees to purchase the property of a second corporation.  
  b.   an individual or corporation purchases enough shares of stock to control it.  
  c.   two or more companies join to form a new corporation.  
  d.   one corporation continues its existence and absorbs another corporation.  

 
 
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