Exam 33: Nature, Formation, and Powers

Promoters have a fiduciary duty to the corporation.

Once a shareholder sells the stock of the corporation, since the ownership of the corporation changes, a new corporation is formed.

The Model Business Corporation Act has been adopted by all of the states in the United States to make state incorporation statutes uniform throughout the United States.

A suit may be brought by the state to challenge the existence of a de facto corporation in a quo warranto action.

"Piercing the corporate veil" will result in personal liability of shareholders.

The City of Chicago would best be described as which of the following?

Whether a corporation is a de facto corporation may be challenged by:

What is the definition of a Subchapter S Corporation?

Name the classifications of corporations.

The business corporation is a key institution not only in the American economy but also in the world power structure.

Charles Bonney, the sole stockholder of Kid Corporation, wrongfully used the corporation to avoid a personal liability.A court's disregard of the corporate entity to hold Bonney personally liable is called: