Noncompliance with Laws and Regulations Includes Only Acts of Omission

question 103

True/False

Noncompliance with laws and regulations includes only acts of omission by the entity that are considered to be unintentional and contrary to the prevailing laws or regulations.

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Definitions:

General Partners

Members of a partnership who are responsible for the management of the partnership, have full authority to bind it, and face unlimited personal liability for its debts.

Limited Partners

Individuals in a partnership who invest money but do not have management responsibilities and whose liability is limited to the amount of their investment.

Foreign Limited Partnership

A partnership entity in which some owners have limited liability and limited involvement in management, recognized under the jurisdiction other than where it operates.

Internal Affairs

A legal doctrine which says that a corporation's internal activities should generally be governed by the laws of the state in which it is incorporated.