Exam 16: Corporations and Corporate Governance

A corporation in the United States that has been incorporated in another country is referred to as a(n)________ corporation.

A requirement that a greater than majority of shares constitutes a quorum of the vote of the shareholders is known as the ________ requirement.

A C corporation pays taxes at the corporate level and also at the shareholder level.

Corporation codes regulate the formation,operation,and dissolution of corporations.

The ________ Act prohibits public companies from making personal loans to their directors or executive officers.

Shares that are repurchased by a corporation are called unissued shares.

A shareholder's authorization of another person to vote the shareholder's shares at the shareholders' meetings in the event of the shareholder's absence is called a(n)________.

Preferred stockholders are given the right to vote for the board of directors of the corporation.

A system in which a shareholder can accumulate all of his or her votes and vote them all for one candidate or split them among several candidates is known as ________.

Explain the business judgment rule and its relationship to the fiduciary duty of care owed by corporate officers and directors.

A(n)________ is a long-term unsecured debt instrument that is based on a corporation's general credit standing.

A corporation is a foreign corporation in states other than the one in which it is incorporated.

A(n)________ is a debt security with a maturity of five years or less.

The shareholders of a corporation act as agents of the corporation.

The determination of whether a corporate director or officer has met his or her duty of care is measured in hindsight.

Helen is the vice-president of Gotspeed Corporation,a company that designs,manufactures and sells sports shoes.Nestor,an independent entrepreneur,designs a new shoe that helps the user's foot grip the shoe better,and he calls it the Anklator.Nestor's friend schedules an appointment for him to meet Helen and present the Anklator for possible adoption by Gotspeed.Instead of presenting the opportunity to Gotspeed's board of directors,Helen pays Nestor's asking price and purchases the Anklator design for herself.She then quits and forms her own company to manufacture and sell Anklator shoes.Helen has breached her duty of loyalty to Gotspeed Corporation by ________.

The articles of incorporation is also known as the ________.

________ are a panel of decision makers who are elected by the shareholders.

Bilkis Brans has 20,000 outstanding shares with four shareholders.Ester owns 9,000 shares,Mendez owns 4,000 shares,Judy owns 4,000 shares,and Aaron owns 3,000 shares.Suppose that two directors of the corporation are to be elected from a potential pool of five candidates.Ester favors candidates 1 and 5,Mendez favors candidates 2 and 4,Judy favors candidates 3 and 4,and Aaron favors candidates 2 and 3.If straight voting occurs,which of the two candidates are likely to win?

Stock that permits a corporation to buy back the preferred stock at some future date is known as ________.