After Bill Roles Graduated from University, He Incorporated Roles Enterprises

question 103

Multiple Choice

After Bill Roles graduated from university, he incorporated Roles Enterprises Ltd. He put $10,000 into the corporation by way of a shareholder's loan and the corporation granted him a security interest in one of its two delivery trucks. You knew Bill at school, so when Roles Enterprises Ltd. needed computer supplies, Bill, on behalf of the corporation, contracted with you, the owner of a business selling computer supplies. As it turned out, Bill placed such orders with you almost every three weeks. Read each of the following separately and indicate which of the following is true.

• A) If Bill neglects to file annual returns for the corporation, Roles Enterprises Ltd. could cease to exist.
• B) If an employee of Roles Enterprises Ltd. came to your store to pick up supplies and caused $900 damage by his negligent driving, you could sue the employee, Roles Enterprises Ltd., and Bill personally because the employee worked for Bill's corporation.
• C) If Roles Enterprises Ltd. owed you $1500 for supplies when it was placed into bankruptcy by its creditors, Bill would be more likely to lose money he lent to the corporation than you would be.
• D) If the corporation owed you money and Bill, the only shareholder in the corporation, was killed, you would look to Bill's estate for payment.
• E) If Bill had inadvertently contracted with you before the corporation was in existence, the corporation would lose the ability to ratify that contract, and the contract would be considered void.

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Definitions:

Economic Reform

A series of governmental policy changes aiming to improve economic efficiency by implementing market-oriented adjustments in the economic system.

Immediate Abolition

The instant termination of a practice or institution, commonly used in historical context to refer to the demand for the immediate end of slavery.

Pennsylvania Abolition Society

An organization founded in 1775 in Philadelphia, aimed at promoting abolition and the relief of free blacks unlawfully held in bondage.

Quakers

A religious group formally known as the Religious Society of Friends, known for their pacifist beliefs, simple living, and emphasis on direct, personal experience of God.