FREE PA Bar Business Associations Questions and Answers

Question 1

What is the default form of business organization when two or more people start a business together without formalizing their arrangement?

Accepted Answer

General Partnership

Answer

Corporation

Answer

Limited Liability Company (LLC)

Answer

Sole Proprietorship

Question 2

How are profits typically distributed in a Pennsylvania general partnership, in the absence of an agreement?

Accepted Answer

Equally among all partners

Answer

Based on the capital contribution of each partner

Answer

Proportional to each partner’s effort

Answer

At the discretion of the managing partner

Question 3

What is the role of a registered agent in Pennsylvania business entities?

Accepted Answer

To receive legal documents on behalf of the company

Answer

To manage the company’s finances

Answer

To file the company’s tax returns

Answer

To oversee daily business operations

Question 4

Which of the following is a unique feature of a Pennsylvania benefit corporation?

Accepted Answer

It must pursue a public benefit in addition to profit

Answer

It is exempt from state taxes

Answer

It cannot have shareholders

Answer

It is not subject to state business laws

Question 5

In Pennsylvania, which document is required to form a corporation?

Accepted Answer

Articles of Incorporation

Answer

Articles of Organization

Answer

Partnership Agreement

Answer

Bylaws