Exam 36: Corporate Formation and Financing

Amendments to the articles of incorporation must be filed with the secretary of state of the state of incorporation.

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

The WaterGlove Corporation issues ________ preferred stock that requires the payment of a quarterly dividend of $5.00 per share.The WaterGlove Corporation falls behind with four quarterly payments, i.e., $20.00 per share of preferred stock.The next quarter, the corporation makes a profit of $25.00 per share.The corporation must pay the $20.00 per share of arrearages to the preferred shareholders plus this quarter's payment of $5.00 per share.

A(n)________ is a clause that can be included in the articles of incorporation that stipulates the activities that the corporation can engage in.The corporation can engage in no other purposes or activities.

________ are powers beyond express powers that allow a corporation to accomplish its corporate purpose.

Authorized shares that have been sold by the corporation are called issued shares.

A C corporation pays taxes at the corporate level and the shareholder's level.

According to the RMBCA, only corporations with 50 or fewer shareholders may elect statutory close corporation status.

The shareholders of the corporation have the absolute right to amend bylaws.

What are the express powers of a corporation?

An act by a corporation that is beyond its express or implied powers is called a(n)________.

Issued shares that have been repurchased by the corporation are referred to as ________.

Shareholders cannot move an injunction against an ultra vires act engaged by the corporation.

Give an account of how articles of incorporations are amended.

The person or persons, partnerships, or corporations that are responsible for incorporation of a corporation is known as a(n)________.

A corporation is a(n)________ corporation in the state in which it is incorporated.

Shares that are repurchased by a corporation are called unissued shares.

Corporation codes regulate the formation, operation, and dissolution of corporations.

Convertible preferred stock permits the preferred stockholders to convert their shares into common stock.

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