Casey, Quinn, and Sam are deciding whether to form an LLC or a corporation for their Iowa construction business. Which of the following is the BEST comparison between an LLC and a corporation?

Morgan Company’s board members Barb and Sam stopped attending meetings, failed to review corporate information, and did not supervise Alex, who then made improper loans to himself that endangered the corporation. Which of the following is the BEST analysis of Barb and Sam’s potential liability to Morgan Company?

Noah, on behalf of Iron Manufacturing Company (Iron), entered into a contract with Scott Equipment, Inc. (Company). Under the contract, Iron agreed to sell electronic components to Company. Noah told Company that he was working on behalf of Iron. Noah has exceeded his actual authority by entering into this contract with Company. If Iron does not want to honor the contract with Company, it will nonetheless be liable to Company if Company can prove that_________________________________________________________________.

True or False? Cohesiveness is the extent to which group members are willing to work together.

True or False? When decision makers are under great stress imposed by forces outside their group, faulty decision making happens.

GreenTech Innovations is a publicly traded company that designs renewable energy solutions. The company’s board of directors includes the following members:  Alice, the company’s CFO, who has been with GreenTech for 10 years. Brian, a former CEO of another renewable energy firm, who has no other role at GreenTech. Carla, a senior engineer at GreenTech for 15 years. David, an independent venture capitalist who invests in clean energy startups. All of the members receive compensation for their board service and all board members own shares. During the board meeting, the directors discuss executive compensation, strategic partnerships, and long-term R&D initiatives. Which of the following correctly distinguishes inside directors from outside directors in this scenario?

TechPro Innovations is a software firm solely owned by Dana. Dana occasionally collaborates with Jordan, a freelance programmer, on specific client projects. During client meetings, Dana introduces Jordan as “my partner” to impress clients and secure larger contracts. Jordan has no ownership interest in TechPro, does not share in profits beyond agreed-upon freelance fees, and never formally agreed to be Dana’s partner. One client, relying on Dana’s statement, signs a $100,000 contract with TechPro. When TechPro fails to deliver, the client sues, claiming that Dana and Jordan operate as partners in the business.  Based on the facts above, what type of partnership, if any, may exist between Dana and Jordan?

Ethics Question: Assume a business is organized as an LLC with Casey and Quinn as managing members and Sam as a passive, non-managing member. Casey secretly takes a profitable construction job opportunity for his own separate business without informing Quinn or Sam. Which of the following is MOST likely true?

Vantage Robotics, Inc. has a nine-member board of directors. Vantage’s bylaws require a majority of the board to constitute a quorum at any board meeting. At a duly called meeting, five directors are initially present, satisfying the quorum requirement. Partway through the meeting, one director leaves early, leaving only four directors present. The remaining four directors vote unanimously to approve a resolution authorizing a major equipment lease. Is the resolution validly adopted?

Fred is a limited partner in Bolton & Jost, a limited partnership organized to develop apartment buildings. After general partner Jost became ill, Fred assumed Jost’s day-to-day management responsibilities and has continued to manage the business’s daily operations ever since. Fred has also had preliminary discussions with two individuals about forming a separate partnership to develop apartment buildings in direct competition with Bolton & Jost. Under the Revised Uniform Limited Partnership Act (RULPA), which of the following statements is correct?