Exam 33: Corporate Formation and Financing

A de jure corporation is one that is formed to accomplish a single purpose within a limited time.

A number of medical and investment professionals network and pool funds to invest in Medical Consult Inc. This is

Market Data Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Market Data is most likely

Common stockholders and preferred stockholders benefit when the market price of the stock increases.

Gwen is a holder of preferred stock in Hearthstone Hotels, Inc. Gwen

The day-to-day operations of a corporation are overseen by

If a business says it is a corporation, and a third party deals with it as a corporation, neither party can question the validity of the business's status.

Because corporate officers have the implied power to bind the firm in matters directly connected to its business, there is no limit to what the officer can do.

With the exception of malpractice, liability for torts committed by others in a firm cannot be imposed on the shareholders of

To avoid sharing control with someone they do not know or like, it would be most effective for the shareholders of a close corporation to

The implied powers of a corporation can be found in the state and federal constitutions.

To pierce the corporate veil is to disregard the corporate entity and hold the directors liable for a corporate obligation.

Because it may result in a piercing of the corporate veil, shareholders' continuous use of corporate property should most especially be avoided by

Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely

A corporation is intangible and invisible, and exists only in the contemplation of the law.

The primary document needed to incorporate a business is

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

A key advantage of the corporate form is the unlimited liability of its owners.

A corporation is not liable for the misconduct of its agents or officers.

A corporation is