The Two Disadvantages Associated with Product Departmentalization Are Costly Duplication

question 75

True/False

The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination.

Analyze the consequences of failing to adhere to legal formalities in the incorporation process, including the concepts of de facto and de jure corporations.

Understand the concept of corporate veil and circumstances under which it can be pierced to hold shareholders personally liable.

Recognize the rights, duties, and potential liabilities of corporate promoters before and after incorporation.

Understand the role and significance of shareholder meetings, voting rights, and dividend distribution in corporate governance.

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Definitions:

Unanimous Written Consent

Unanimous Written Consent refers to a legal document that indicates the agreement of all members of a board or group on a decision without the need for a formal meeting.

Limited Partners

Investors in a limited partnership who have their liability for the debts of the business limited to the amount they have invested.

Partnership Agreement

A contract between business partners outlining the terms and conditions of their partnership, including responsibilities and profit sharing.

1976 RULPA

The Revised Uniform Limited Partnership Act of 1976, a set of laws adopted by various U.S. states to govern the formation, operation, and dissolution of limited partnerships.