Exam 20: Corporations

Godfrey is elected as a director for Healthful Snax, Inc. He will most likely serve for a term of

Doris wants to go into business as eBeats to market a new fitness app. Organizational fees are required to form all of the following business organizations except

A director must always vote on a proposed transaction in which he or she has a personal interest.

The articles of incorporation serve as a primary source of authority for the corporation's future organization and business functions.

Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group of shareholders intend to make a profit from their sales of fencing wire. Wiley Wire Corporation is

For shareholders to act during a meeting, a quorum must be present.

Under the duty of loyalty, directors must refrain from self-dealing.

A new position on a board of directors can be created by an amendment to the articles of incorporation.

Corporate bylaws may specify that a director can be removed for cause.

When deciding which form of business organization would be the most appropriate, businesspersons normally take into account the ease of creation.

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

Aviators Source Corporation makes and sells aircraft parts. In most states, the minimum number of directors that must be present before Aviators Source's board could transact its business is

Bread & Brews, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of

Bea is a shareholder of Chocolate Confections Corporation. The right to inspect corporate books and records is

Shannon is an officer for Turista Shirts Corporation. Due to a bad business decision, made on a reasonable basis, on Shannon's part, the company's sales decrease. Shannon is most likely liable for breach of

Farrah and Grant are shareholders of Hong Kong Restaurants, Inc. As shareholders, they must approve

Miracle Mobile Devices, Inc., is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Miracle is

A court will pierce the corporate veil of a corporation that is formed to accomplish an illegitimate objective.

Refer to Fact Pattern 20-1. Any damages recovered by Ray's suit will go to

To pierce the corporate veil means to shield the shareholders from personal liability.