FREE WA Bar Business Associations Questions and Answers
Which of the following is a characteristic of a general partnership under Washington law?
Correct!
Wrong!
In a general partnership, all partners have equal management rights unless they agree otherwise in the partnership agreement.
What is required for the formation of a limited liability company (LLC) in Washington?
Correct!
Wrong!
An LLC in Washington is formed by filing Articles of Organization with the Secretary of State.
Under Washington law, which of the following is NOT a duty owed by a corporate director to the corporation?
Correct!
Wrong!
Directors owe duties of loyalty and care, but there is no recognized "duty of obedience" under corporate law. The duty of obedience is more relevant in non-profit organizations.
Which of the following best describes the concept of "piercing the corporate veil" under Washington law?
Correct!
Wrong!
"Piercing the corporate veil" occurs when courts hold shareholders personally liable for corporate obligations, typically in cases of fraud, undercapitalization, or commingling of assets.
Under Washington law, which of the following is true regarding the liability of a partner in a limited partnership?
Correct!
Wrong!
In a limited partnership, limited partners have liability limited to their investment and typically do not participate in management.