Question 1

Which of the following is not a characteristics of a corporation?

Accepted Answer

A) It has perpetual existence. 
B) It is a legal entity of its own. 
C) It is able to be sued and to sue. 
D) It is usually managed by its shareholders. 
A) It has perpetual existence. 
B) It is a legal entity of its own. 
C) It is able to be sued and to sue. 
D) It is usually managed by its shareholders.

Question 2

An offer to purchase capital stock in a corporation yet to be formed is made by a(n):

Accepted Answer

A) promoter. 
B) subscriber. 
C) incorporator. 
D) subsidiary. 
A) promoter. 
B) subscriber. 
C) incorporator. 
D) subsidiary.

Question 3

What are the principal attributes of a corporation?

Accepted Answer

The principal attributes of a corporatio

Question 4

Shareholders do not have limited liability for corporate debts.

Accepted Answer

A) True 
 B)False

Question 5

A corporation has perpetual existence unless otherwise stated in its articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 6

A corporation owned by one person is treated under the law as that person.

Accepted Answer

A) True 
 B)False

Question 7

Michael, employed by Romer Corporation, fraudulently represents Romer's product while attempting to make a sale.
Michael, but not Romer Corporation, may be found liable for fraud.

Accepted Answer

A) True 
 B)False

Question 8

Zeron Corporation is incorporated in the State of West Virginia.It now wants to open a retail outlet in Kentucky.
Zeron must obtain a certificate of authority allowing it to do business in the Commonwealth of Kentucky.

Accepted Answer

A) True 
 B)False

Question 9

The Revised Model Business Corporation Act has been adopted at least in part by more than half of the states.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the corporate form of business organization with respect to how it is created, the liability of persons having an ownership interest, how management is conducted, and duration of existence.

Accepted Answer

A corporation is formed only by substant

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Which of the following run the day-to-day operations of a corporation?

Accepted Answer

A) Shareholders 
B) Board of directors 
C) Officers 
D) Subscribers 
A) Shareholders 
B) Board of directors 
C) Officers 
D) Subscribers

Question 15

The majority of courts view a stock subscription as merely an offer that cannot be accepted until:

Accepted Answer

A) the corporation enters a novation with the subscriber. 
B) the promoter signs in the name of the corporation. 
C) the corporation comes into existence. 
D) there is a written agreement. 
A) the corporation enters a novation with the subscriber. 
B) the promoter signs in the name of the corporation. 
C) the corporation comes into existence. 
D) there is a written agreement.

Question 16

A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a:

Accepted Answer

A) de facto corporation. 
B) de jure corporation. 
C) corporation by estoppel. 
D) private corporation. 
A) de facto corporation. 
B) de jure corporation. 
C) corporation by estoppel. 
D) private corporation.

Question 17

In corporations, the managers are necessarily owners.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is untrue regarding professional corporations?

Accepted Answer

A) State statutes permitting professional corporations all apply only to specified professions. 
B) All states have statutes which permit the practice of professions by duly licensed individuals in the corporate form. 
C) There is a supplement to the MBCA which deals with professional corporations. 
D) Professionals may avoid personal liability for corporate debts by incorporating. 
A) State statutes permitting professional corporations all apply only to specified professions. 
B) All states have statutes which permit the practice of professions by duly licensed individuals in the corporate form. 
C) There is a supplement to the MBCA which deals with professional corporations. 
D) Professionals may avoid personal liability for corporate debts by incorporating.

Question 19

Although, in general, internal affairs of foreign corporations are not regulated by the state, at least a few states, including New York, regulate such matters of those corporations that conduct a majority of their business in the state but are incorporated elsewhere.

Accepted Answer

A) True 
 B)False

Question 20

In the absence of contractual restrictions, shares in a corporation may be transferred by sale, gift, or pledge.

Accepted Answer

A) True 
 B)False

Exam 33: Nature, Formation, and Powers

Which of the following is not a characteristics of a corporation?

An offer to purchase capital stock in a corporation yet to be formed is made by a(n):

What are the principal attributes of a corporation?

Shareholders do not have limited liability for corporate debts.

A corporation has perpetual existence unless otherwise stated in its articles of incorporation.

A corporation owned by one person is treated under the law as that person.

Michael, employed by Romer Corporation, fraudulently represents Romer's product while attempting to make a sale. Michael, but not Romer Corporation, may be found liable for fraud.

Zeron Corporation is incorporated in the State of West Virginia.It now wants to open a retail outlet in Kentucky. Zeron must obtain a certificate of authority allowing it to do business in the Commonwealth of Kentucky.

The Revised Model Business Corporation Act has been adopted at least in part by more than half of the states.

Discuss the corporate form of business organization with respect to how it is created, the liability of persons having an ownership interest, how management is conducted, and duration of existence.

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

Which of the following is untrue regarding closely held corporations?

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

Which of the following run the day-to-day operations of a corporation?

The majority of courts view a stock subscription as merely an offer that cannot be accepted until:

A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a:

In corporations, the managers are necessarily owners.

Which of the following is untrue regarding professional corporations?

Although, in general, internal affairs of foreign corporations are not regulated by the state, at least a few states, including New York, regulate such matters of those corporations that conduct a majority of their business in the state but are incorporated elsewhere.

In the absence of contractual restrictions, shares in a corporation may be transferred by sale, gift, or pledge.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

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

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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