Exam 22: Life and Death of a Corporation

A director violates the corporate opportunity doctrine if he or she competes with the corporation,unless the disinterested directors approve of the director's actions.

Carey decided to incorporate her business under the name yStar Inc.Before yStar was incorporated,Carey signed a contract in the name of yStar,Inc.to have some office space remodeled.Which statement is correct?

Under corporate law,a corporation that officially states its purpose is "to engage in any lawful activity for which corporations may be organized under the General Corporation Law of Idaho" is too broad.A corporation's purpose must be more narrowly defined.

The executives of Jornaginn Corporation have decided they need to sell 50,000 additional shares of stock to finance their expansion plans.The executives:

Incorporators are required to sign the charter,deliver it to the proper state officials,and purchase a certain percentage of the initial stock offering.

Who has the right to manage the business of a corporation?

A domestic corporation is a corporation that deal with non commercial matters.

Common stock is last stock in line for any corporate payouts,including dividends and liquidation payments.

Discuss how the Sarbanes-Oxley Act affects Haletronne Co.,a publicly traded corporation.

Under the Business Judgment Rule:

Defining a corporation with such information as the corporate name,the number and type of authorized shares of stock,identification of the purpose and the agent,is done through the:

A corporate charter is filed with:

A corporation is required to have at least one class of stock with voting rights.

A corporation must have a registered agent within the state of incorporation only if the corporation maintains an office in that state.

Zach decided to incorporate his business under the name of "Zamm." In addition to "Zamm," the Model Act requires that Zach include one of the following words: "corporation," "incorporated," "limited," or "company" or an abbreviation thereof.

Self dealing by a manager of a corporation:

A corporation must obtain shareholder approval before the company:

The officers of a corporation are:

A corporation is not allowed to issue dividends to shareholders unless it is solvent.

What is true about annual shareholders' meetings?