Business Organizations

3. one benefit of an LLC is flow-through __________
6. it is quite difficult for a shareholder to win damages from directors based a claim that the directors breached their duty of ______
8. this type of clause in a company's charter might protect directors against liability for harming the company
9. a document that sets for the rules, rights, responsibilities for a company and its officers
11. to form a company, a person must file a certificate of ________ with the state.
12. a lawsuit in which a group of shareholders sues on behalf of the company
13. if an officer or director approves a self-interested transaction in the name of the company, he or she must show that the transaction was entirely _____ to the company
14. a _______ proprietorship is a small business entity
16. These people are the owners of a company

1. this is a position of trust
2. the name of the person who forms a company
4. the business judgment rule acts as a ________ that the director or officer upheld her duty of care
5. this form of business organization is popular among professional service firms
7. self-dealing is a breach of a director's duty of _______
10. the top day-to-day manager of a company
12. These people are the top managers of a company
15. this is the process that leads a company's stock becoming publicly traded