Exam 16: Corporations and the Sarbanes-Oxley Act

Proxy solicitation for shareholder votes cannot be made by electronic transmission.

A corporation is a foreign corporation in states other than the one in which it is incorporated.

Which of the following best defines a merged corporation?

Preferred stockholders are given the right to vote for the board of directors of the corporation.

The debt security of notes doesn't have a maturity period.

________ is a general rule of corporate law that provides that, generally, shareholders are liable only to the extent of their capital contributions for the debts and obligations of their corporation and are not personally liable for the debts and obligations of the corporation.

An S corporation cannot have more than 100 shareholders.

Any corporation with more than 100 shareholders is automatically considered a C corporation for federal income tax purposes.

A corporation in the state in which it was formed is referred to as a(n)________.

Marshall is the purchasing agent for the DigitoolArt Corporation. His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation. Assume that Bronson, a computer salesperson, pays Marshall a $20,000 kickback to purchase from him computers needed by the DigitoolArt Corporation. What breach of the duty of loyalty has Marshall committed here?

Securities that establish a debtor-creditor relationship in which the corporation borrows money from the investor to whom a debt security is issued are known as ________.

The ________ Act prohibits public companies from making personal loans to their directors or executive officers.

Stock that permits a corporation to buy back the preferred stock at some future date is known as the ________.

What is a merger?

The Inkilwas Corporation has 30,000 shares outstanding. A shareholders' meeting is duly called to amend the articles of incorporation, and 17,501 shares are represented at the meeting. If an Inkilwas Corporation amendment for its articles of incorporation is put to vote at this meeting, which of the following statements would be true with respect to the passing of the amendment?

Self-dealing is when shareholders use their position to deprive the board of directors of personal monetary gain.

An S corporation can have nonresident aliens as shareholders.

According to priority, which of the following claimants is the last to be paid after assets have been liquidated of a corporation?

Which of the following would be seen as a breach of the duty of loyalty by a corporate officer?

Treasury shares cannot be issued by the corporation.