Question 1

Which of the following is true of treasury shares?

Accepted Answer

A) They cannot be issued by the corporation. 
B) They cannot be voted by the corporation. 
C) They are owned by shareholders. 
D) They are paid dividends for. 
A) They cannot be issued by the corporation. 
B) They cannot be voted by the corporation. 
C) They are owned by shareholders. 
D) They are paid dividends for.

Question 2

A(n)________ is a person or persons who organize and start a corporation, negotiate and enter into contracts in advance of its formation, find the initial investors to finance the corporation, and so forth.

Accepted Answer

A) incorporator 
B) promoter 
C) articles drafter 
D) negotiator 
A) incorporator 
B) promoter 
C) articles drafter 
D) negotiator

Question 3

Which of the following is true of corporate bylaws?

Accepted Answer

A) They only contain rules on how the corporation can deal with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors, or shareholders of the corporation. 
D) They do not have to be filed with any government official. 
A) They only contain rules on how the corporation can deal with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors, or shareholders of the corporation. 
D) They do not have to be filed with any government official.

Question 4

Which of the following is true for the amendment of articles of incorporation that does not affect the rights attached to shares?

Accepted Answer

A) The shareholders need to propose a resolution of recommending such an amendment. 
B) The shareholders need to provide vote of approval for the amendment. 
C) The board of directors can approve the amendment without shareholder approval. 
D) The amendment need not be filed with the secretary of state of the state of incorporation. 
A) The shareholders need to propose a resolution of recommending such an amendment. 
B) The shareholders need to provide vote of approval for the amendment. 
C) The board of directors can approve the amendment without shareholder approval. 
D) The amendment need not be filed with the secretary of state of the state of incorporation.

Question 5

________ are corporations that have many shareholders and whose securities are often traded on national stock exchanges.

Accepted Answer

A) Closely held corporations 
B) Non-profit corporations 
C) Publicly held corporations 
D) Shore-up corporations 
A) Closely held corporations 
B) Non-profit corporations 
C) Publicly held corporations 
D) Shore-up corporations

Question 6

Involuntary dissolution of a corporation that is ordered by the secretary of state if a corporation has failed to comply with certain procedures required by law is known as ________.

Accepted Answer

A) judicial dissolution 
B) administrative dissolution 
C) cumulative dissolution 
D) liquidation 
A) judicial dissolution 
B) administrative dissolution 
C) cumulative dissolution 
D) liquidation

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What is an indenture agreement?

Accepted Answer

The terms of a debt security are commonl

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A(n)________ is a fictitious legal entity that is created according to statutory requirements.

Accepted Answer

A) corporation 
B) cartel 
C) outfit 
D) conference 
A) corporation 
B) cartel 
C) outfit 
D) conference

Question 11

The board of directors makes policy decisions concerning the operation of a corporation.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Shareholders of a closely held corporation play a minor role in its management.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following has a fixed maturity date?

Accepted Answer

A) bonds 
B) common stock 
C) cumulative preferred stock 
D) participating preferred stock 
A) bonds 
B) common stock 
C) cumulative preferred stock 
D) participating preferred stock

Question 15

Treasury shares cannot be issued by the corporation.

Accepted Answer

A) True 
 B)False

Exam 36: Corporate Formation and Financing

Which of the following is true of treasury shares?

A(n)________ is a person or persons who organize and start a corporation, negotiate and enter into contracts in advance of its formation, find the initial investors to finance the corporation, and so forth.

Which of the following is true of corporate bylaws?

Which of the following is true for the amendment of articles of incorporation that does not affect the rights attached to shares?

________ are corporations that have many shareholders and whose securities are often traded on national stock exchanges.

Involuntary dissolution of a corporation that is ordered by the secretary of state if a corporation has failed to comply with certain procedures required by law is known as ________.

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

What is an indenture agreement?

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

A(n)________ is a fictitious legal entity that is created according to statutory requirements.

The board of directors makes policy decisions concerning the operation of a corporation.

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

Shareholders of a closely held corporation play a minor role in its management.

Which of the following has a fixed maturity date?

Treasury shares cannot be issued by the corporation.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

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Secured Transactions and E-Filing

Bankruptcy and Reorganization

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Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

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Limited Partnerships and Special Partnerships

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

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Environmental Protection

Antitrust Law and Unfair Trade Practices

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