LA Bar Business Organizations 1

Question 1

Under the Louisiana Business Corporation Act, how many persons are required to organize a corporation?

Accepted Answer

One or more

Answer

Louisiana law permits a single individual to form a corporation, as only one or more persons are required to act as incorporators under the Louisiana Business Corporation Act.

Question 2

Which of the following must be included in the articles of incorporation under the Louisiana Business Corporation Act?

Accepted Answer

The total number of shares the corporation is authorized to issue

Answer

The Louisiana Business Corporation Act requires articles of incorporation to state the total number of authorized shares, but does not require shareholder names, a specific business purpose, or officer salaries.

Question 3

Under the Louisiana Business Corporation Act, when does a corporation's legal existence begin?

Accepted Answer

When the articles of incorporation are filed with the Secretary of State

Answer

Under the Louisiana Business Corporation Act, corporate existence begins upon the effective date of filing of the articles of incorporation with the Secretary of State.

Question 4

Under Louisiana law, a limited liability company (LLC) primarily offers which protection to its members?

Accepted Answer

Limited liability, shielding members from personal responsibility for LLC obligations

Answer

An LLC provides members with limited liability, meaning members are generally not personally responsible for the debts and obligations of the LLC beyond their investment.

Question 5

In a Louisiana limited partnership, which partner bears unlimited personal liability for all partnership obligations?

Accepted Answer

The general partner(s) only

Answer

In a limited partnership, the general partner has unlimited personal liability for all partnership obligations, while limited partners' liability is confined to their capital contributions.

(LA Bar) Louisiana Bar Exam Practice Test

(LA Bar) Louisiana Bar Exam Practice Test

LA Bar Business Organizations 1