1. What is the primary advantage of a limited liability company (LLC) over a partnership? - A) Unlimited life - B) Limited liability for owners - C) No need for annual meetings - D) All of the above Answer: B) Limited liability for owners Rationale: The main advantage of an LLC is that the owners have limited liability for the debts and actions of the company, unlike in a partnership where partners can be held personally liable. 2. Which of the following is a characteristic of a corporation? - A) Pass-through taxation - B) Perpetual existence - C) No separation between ownership and management - D) Limited number of shareholders Answer: B) Perpetual existence Rationale: Corporations have a perpetual existence, meaning they continue to exist even if ownership or management changes, unlike sole proprietorships or partnerships that may dissolve. 3. In the context of business law, what does the 'doctrine of ultra vires' refer to? - A) Acts beyond the powers of a company - B) The responsibilities of a company's board of directors - C) The legal protections for minority shareholders - D) The process of incorporating a business Answer: A) Acts beyond the powers of a company Rationale: 'Ultra vires' is a Latin term meaning 'beyond the powers'; in business law, it refers to acts performed by a company that are beyond the scope of its charter or articles of incorporation. 4. What legal document outlines the internal rules for the management of a corporation? - A) Articles of Incorporation - B) Corporate Bylaws - C) Partnership Agreement