Exam 16: Corporations and Corporate Governance

Private companies and nonprofit organizations are also influenced by the Sarbanes-Oxley Act's accounting and corporate governance rules.

According to the Revised Model Business Corporation Act (RMBCA),what establishes a quorum to hold a meeting of the shareholders?

The ________ is a general rule of corporate law that provides that generally,shareholders are liable only to the extent of their capital contributions for the debts and obligations of their corporation and are not personally liable for the debts and obligations of the corporation.

According to the provisions set forth by the Sarbanes-Oxley Act,the ________,a federal government agency,may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

The duty of care requires corporate directors and officers to use care and diligence when acting on behalf of the corporation.

Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are known as ________.

Which of the following entities elects members of the board of directors for a corporation?

The business judgment rule states that corporate directors and officers are liable to the corporation or its shareholders for even honest mistakes of judgment.

Give an account of publicly held and closely held corporations.

The Sarbanes-Oxley Act requires CEO and CFO certification for annual and quarterly reports.

A(n)________ is a person or a corporation that is empowered to accept service of process on behalf of a corporation and is identified in the articles of incorporation.

Foreign corporations can elect to be taxed as an S corporation.

A corporation that uses subsidiary corporations to operate in more than one country cannot be termed as a multinational corporation.

Shareholders are owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation.

A person or corporation that is empowered to accept service of process on behalf of a corporation is referred to as a(n)________.

________ are the basic governing documents of a corporation which must be drafted and filed with,and approved by,the state before the corporation can be officially incorporated.

Secret profits obtained by a director or officer cannot be recovered by a corporation.

A shareholder's authorization of another person to vote the shareholder's shares at a shareholders' meeting in the event of the shareholder's absence is known as a moxie.

Straight voting gives a minority shareholder a better opportunity to elect someone to the board of directors.

Involuntary dissolution of a corporation that is ordered by the secretary of state if a corporation has failed to comply with certain procedures required by law is known as ________.