NYLE NY Business Relationships 2

Question 1

Under New York's Business Corporation Law (BCL), what is the minimum number of directors required for a corporation?

Accepted Answer

One

Answer

Three

Answer

Two

Answer

Five

Question 2

In New York, a limited liability company (LLC) is formed by filing what document with the Department of State?

Accepted Answer

Articles of Organization

Answer

Certificate of Incorporation

Answer

Partnership Agreement

Answer

Operating Agreement

Question 3

Under New York's Partnership Law, which type of partner in a limited partnership has personal liability for partnership debts?

Accepted Answer

General partners

Answer

Limited partners

Answer

Both general and limited partners equally

Answer

Neither; the partnership entity alone is liable

Question 4

Under the BCL, a shareholder's derivative action requires the plaintiff to first do what?

Accepted Answer

Make a demand on the board of directors to take action, or show that demand would be futile

Answer

Obtain approval from a majority of shareholders

Answer

Post a bond equal to the potential judgment

Answer

File a complaint with the NY Attorney General

Question 5

Under New York law, what is the fiduciary duty owed by an agent to a principal?

Accepted Answer

A duty of loyalty, obedience, and reasonable care

Answer

Only a duty to complete assigned tasks

Answer

A duty limited to avoiding criminal conduct

Answer

No fiduciary duty unless expressly stated in the contract

Question 6

New York's publication requirement for LLCs under LLC Law § 206 requires publication in how many newspapers?

Accepted Answer

Two newspapers (one daily, one weekly) in the county of formation

Answer

One newspaper of general circulation

Answer

Three newspapers designated by the Secretary of State

Answer

No publication is required