Exam 20: Corporations

If a corporation has S corporation status, it can avoid the imposition of income taxes at the corporate level.

Nora is a director of Outback Outfitters, Inc. Under the standard of due care owed by directors of a corporation, Nora's decisions must be informed and

When the corporation is harmed by the actions of a third party, the directors can bring a lawsuit in the name of the corporation against that party.

A state court can dissolve a corporation for fraudulent conduct by its directors.

The ordinary rules of agency normally apply to the employment of corporate officers.

Sierra is a holder of preferred stock in Rio Grande Irrigation & Development Corporation. Sierra has priority over holders of Rio common stock as to

Guy is Hot Java Company's majority shareholder. Guy decides to sell his Hot Java stock. The sale will be an effective transfer of the control of the company. Does Guy owe a duty to Hot Java or its minority shareholders in this situation?

The incorporation of the town of Halfway, Oregon, is approved by the state. Halfway is

As a general rule, shareholders make daily business decisions for a corporation.

Deepwater Dredging Company holds itself out to others as being a corporation but makes no attempt to incorporate. Estuary Marina signs a contract with Deepwater and Deepwater fails to perform. Estuary Marina files a suit against the firm. The court will likely hold that Deepwater is

David wants to go into business as Explosive Bursts to make and market fireworks. When deciding which form of business organization would be most appropriate, David would normally take into account all of the following except

Brandi is a shareholder of Cloud Servers & Routers Inc.. Brandi will be deemed to have a fiduciary duty to Cloud and its minority shareholders if she has a sufficient number of shares to

Smoke & Mirrors Inc. can be compelled to dissolve by

Sports Data Stream Inc. is a start-up business. To obtain financing, the corporation makes use of a cooperative activity in which people network and pool funds and other resources via the Internet. This is

Since stock is intangible personal property, the ownership right to stock exists independently of a stock certificate.

A firm named Biometric Research Corporation makes an attempt to incorporate for a purpose other than making a profit. Biometric is

Every shareholder is entitled to examine specified corporate records but only in person, not through an agent.

A director or officer must exercise due care in performing their duties, including acting in good faith.

Venture capital is capital provided to new business ventures by professional, outside investors.

Stocks represent the borrowing of funds by firms.