Question 1

A corporation is considered to be a person within the Fifth Amendment's clause that protects a person against self-incrimination.

Accepted Answer

A) True 
 B)False

Question 2

A corporation has no constitutional protection against unreasonable searches and seizures.

Accepted Answer

A) True 
 B)False

Question 3

"Doing business" within a particular state will subject a foreign corporation to the litigation,regulation,and taxation of that state.

Accepted Answer

A) True 
 B)False

Question 4

The person who signs and files the articles of incorporation is the:

Accepted Answer

A)  promoter. 
B)  incorporator. 
C)  subscriber. 
D)  majority stockholder. 
A)  promoter. 
B)  incorporator. 
C)  subscriber. 
D)  majority stockholder.

Question 5

Claire opened Claire's Beauty Parlor in her home.She solicited funds to begin the business from Jack,who was led to believe that the business was incorporated.Claire had,in fact,never filed the papers.One day,Claire fell asleep while giving a customer a permanent and the solution caused her customer severe burns.The customer sued the Beauty Parlor for $500,000,an amount enormously in excess of the business assets.Under the RMBCA,what would be the result?

Accepted Answer

A)  Claire and Jack would not be personally liable. 
B)  Claire would not be personally liable,but Jack would. 
C)  Jack would not be personally liable,but Claire would. 
D)  Both would be personally liable since there was no corporation formed. 
A)  Claire and Jack would not be personally liable. 
B)  Claire would not be personally liable,but Jack would. 
C)  Jack would not be personally liable,but Claire would. 
D)  Both would be personally liable since there was no corporation formed.

Question 6

When a shareholder sells the stock of the corporation,the ownership of the corporation changes,and a new corporation is formed.

Accepted Answer

A) True 
 B)False

Question 7

The Model Business Corporation Act has been adopted by all of the states in the United States,thereby making state incorporation statutes uniform throughout the United States.

Accepted Answer

A) True 
 B)False

Question 8

In many states,the services of the incorporators are perfunctory and short-lived.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is untrue regarding closely held corporations?

Accepted Answer

A)  Most corporations in the U.S.are closely held. 
B)  In most states,closely held corporations are subject to the general incorporation statute governing all corporations. 
C)  Shareholders usually have little voice in the management and control of the business. 
D)  Some states have enacted special legislation to accommodate the needs of closely held corporations. 
A)  Most corporations in the U.S.are closely held. 
B)  In most states,closely held corporations are subject to the general incorporation statute governing all corporations. 
C)  Shareholders usually have little voice in the management and control of the business. 
D)  Some states have enacted special legislation to accommodate the needs of closely held corporations.

Question 10

Under the RMBCA,a newly formed corporation need not hold an organizational meeting.

Accepted Answer

A) True 
 B)False

Question 11

Under the Model Act,the bylaws may contain any provision for managing the business and regulating the affairs of the corporation as long as it is not contrary to or inconsistent with the law or articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a general corporate power typically granted by incorporation statutes,including the RMBCA?

Accepted Answer

A)  To have a corporate seal 
B)  To own and vote shares of other entities 
C)  To make donations for charitable or educational purposes 
D)  All of these are typical corporate powers. 
A)  To have a corporate seal 
B)  To own and vote shares of other entities 
C)  To make donations for charitable or educational purposes 
D)  All of these are typical corporate powers.

Exam 33: Nature,formation,and Powers

A corporation is considered to be a person within the Fifth Amendment's clause that protects a person against self-incrimination.

A corporation has no constitutional protection against unreasonable searches and seizures.

"Doing business" within a particular state will subject a foreign corporation to the litigation,regulation,and taxation of that state.

The person who signs and files the articles of incorporation is the:

When a shareholder sells the stock of the corporation,the ownership of the corporation changes,and a new corporation is formed.

The Model Business Corporation Act has been adopted by all of the states in the United States,thereby making state incorporation statutes uniform throughout the United States.

In many states,the services of the incorporators are perfunctory and short-lived.

Which of the following is untrue regarding closely held corporations?

Under the RMBCA,a newly formed corporation need not hold an organizational meeting.

Under the Model Act,the bylaws may contain any provision for managing the business and regulating the affairs of the corporation as long as it is not contrary to or inconsistent with the law or articles of incorporation.

Which of the following is not a general corporate power typically granted by incorporation statutes,including the RMBCA?

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

Filters