Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability

Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Which form of business entity should these individuals adopt?    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  general partnership E.  corporation Refer to section 1.2

36.

Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  limited liability company E.  corporation Refer to section 1.2

37.

Which one of the following best states the primary goal of financial management?    A.  maximize current dividends per share B.  maximize the current value per share C.  increase cash flow and avoid financial distress D.  minimize operational costs while maximizing firm efficiency E.  maintain steady growth while increasing current profits Refer to section 1.3

Sam promises his uncle, Bob, that he will lose 10 pounds and exercise every day during the spring semester in exchange

Consideration is optional in every contract. 
FALSE

In a bilateral contract, the consideration for a promise is a completed act. 
FALSE

An exception to the rule requiring consideration is promissory estoppel. 
TRUE

An illusory promise is not a consideration. 
TRUE

As a general rule, past consideration qualifies as consideration. 
FALSE

In some cases, if past consideration was given with expectation of future payment, the court may enforce the promise. 
TRUE

A promise to do something that you are already obligated to do is generally a valid consideration. 
FALSE

The UCC permits requirement, but not output, contracts for the sale of goods. 
FALSE

Partial payment of a debt may or may not be valid consideration, depending on whether the debt is liquidated or unliquidated. 
TRUE

A liquidated debt may be the subject of an accord and satisfaction. 
FALSE

Which of the following is what a person will receive in return for performing a contract obligation? 
A. Consideration
B. Acknowledgement
C. Approval
D. Accord
E. Accession

Sam promises his uncle, Bob, that he will lose 10 pounds and exercise every day during the spring semester in exchange for having his tuition paid for the fall semester. The uncle agrees; but after Sam has lost 10 pounds and exercised all semester, Bob refuses to pay saying that no contract existed. Which of the following is true? 
A. Consideration was present, there was an enforceable contract, and Bob has wrongfully refused to pay.
B. There was no consideration present, and Bob has no obligation to pay.
C. There was no consideration present, but Bob must pay under principles of promissory estoppels.
D. There was consideration present, but Bob is not required to pay because the contract was illusory.
E. There was consideration present, but Bob is not required to pay because Bob did not receive a benefit personally.