1. Identify a true statement about a limited liability partnership (LLP)
a. A general partner of a limited liability partnership is responsible for the negligence and irresponsibility of limited partners.
b. A limited partner of a limited liability partnership is responsible for the general management of the partnership business.
c. A general partner of a limited liability partnership is liable to pay tax on all the partnership income.
d. A general partner of a limited liability partnership is personally liable for all business debts.
e. A limited partner responsible for the negligence and irresponsibility of general partners.
2. The 11 "titles" in the Sarbanes-Oxley Act of 2002 establish standards for accountability and responsibility of financial reporting information for major corporations. Which of the following activities does the act provide rules that a corporation must abide by?
a. The corporation must have a committee that consists of an internal director nominated from the board to oversee the firm's audits.
b. The corporation's internal auditor will render an unbiased (independent) opinion concerning the firm's financial statement.
c. The corporation must maximize social welfare through funding of environmentally friendly activities.
d. The corporation must provide additional information about the procedures used to construct and report financial statements.
e. The firm's CEO and CFO must certify audit reports submitted to the Securities Exchange Commission.