Howe, Hardy, and Harkins, a law firm in Alberta, decides to register as a limited liability partnership. Which of the following is TRUE?
A) Such an entity is not permitted.
B) Henceforth, the firm will refer to itself as Howe, Hardy, and Harkins, LLP.
C) Howe will continue to be liable for the negligence of Hardy and Harkins.
D) Once the limited liability partnership is registered, Howe will not be liable for the negligence of Hardy and Harkins.
E) Both B and D.
E
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An operating agreement is adopted by members of a limited liability company
a. True b. False Indicate whether the statement is true or false
Suppose a new company decides to raise a total of $200 million, with $100 million as common equity and $100 million as long-term debt. The debt can be mortgage bonds or debentures, but by an iron-clad provision in its charter, the company can never raise any additional debt beyond the original $100 million. Given these conditions, which of the following statements is CORRECT?
A. The higher the percentage of debt represented by mortgage bonds, the riskier both types of bonds will be and, consequently, the higher the firm's total dollar interest charges will be. B. If the debt were raised by issuing $50 million of debentures and $50 million of first mortgage bonds, we could be certain that the firm's total interest expense would be lower than if the debt were raised by issuing $100 million of debentures. C. In this situation, we cannot tell for sure how, or even whether, the firm's total interest expense on the $100 million of debt would be affected by the mix of debentures versus first mortgage bonds. The interest rate on each type of bond would increase as the percentage of mortgage bonds used was increased, but the average cost might well be such that the firm's total interest charges would not be affected materially by the mix between the two. D. The higher the percentage of debentures, the greater the risk borne by each debenture, and thus the higher the required rate of return on the debentures. E. If the debt were raised by issuing $50 million of debentures and $50 million of first mortgage bonds, we could be certain that the firm's total interest expense would be lower than if the debt were raised by issuing $100 million of first mortgage bonds.
The fact that a drawer has filed a stop payment order automatically relieves the drawer of liability on the underlying obligation
Indicate whether the statement is true or false
The ________ issued by the secretary of state or similar state authority grants foreign corporations and other types of business organizations the right to transact business in that state.
A. articles of foreign corporation B. certificate of assumed name C. certificate of good standing D. certificate of authority