Question 1

Which of the following is true about dividends?

Accepted Answer

A) Dividends are paid at the discretion of the shareholders. 
B) Dividends cannot be used for corporate purposes. 
C) Dividends will be paid to shareholders who have sold their shares prior to the record date. 
D) Dividends in cash or property,once declared,cannot be revoked. 
A) Dividends are paid at the discretion of the shareholders. 
B) Dividends cannot be used for corporate purposes. 
C) Dividends will be paid to shareholders who have sold their shares prior to the record date. 
D) Dividends in cash or property,once declared,cannot be revoked.

Question 2

A system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open is known as cumulative voting.

Accepted Answer

A) True 
 B)False

Question 3

The shareholders are responsible for determining how much will be paid in dividends.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of corporate bylaws?

Accepted Answer

A) They only contain rules addressing how the corporation can interact with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors or shareholders of the corporation. 
D) They do not have to be filed with any government official. 
A) They only contain rules addressing how the corporation can interact with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors or shareholders of the corporation. 
D) They do not have to be filed with any government official.

Question 5

Stock for which any missed dividend payments must be paid in the future to the preferred shareholders before the common shareholders can receive any dividends is known as ________ stock.

Accepted Answer

A) cumulative preferred 
B) noncumulative preferred 
C) common 
D) participating preferred 
A) cumulative preferred 
B) noncumulative preferred 
C) common 
D) participating preferred

Question 6

Which of the following is true of a corporation's incorporation in a state?

Accepted Answer

A) Domestic corporations can incorporate in only one state. 
B) Domestic corporations can incorporate in all states in which they conduct business. 
C) Alien corporations can only incorporate in one state. 
D) Foreign corporations can incorporate in more than one state. 
A) Domestic corporations can incorporate in only one state. 
B) Domestic corporations can incorporate in all states in which they conduct business. 
C) Alien corporations can only incorporate in one state. 
D) Foreign corporations can incorporate in more than one state.

Question 7

Issued shares that have been repurchased by the corporation are referred to as ________ shares.

Accepted Answer

A) outstanding 
B) liquidated 
C) unissued 
D) treasury 
A) outstanding 
B) liquidated 
C) unissued 
D) treasury

Question 8

Usurping a corporate opportunity is a breach of the duty of loyalty that can only be committed by a shareholder.

Accepted Answer

A) True 
 B)False

Question 9

The shareholders of a corporation have the absolute right to amend the bylaws.

Accepted Answer

A) True 
 B)False

Question 10

Common stockholders receive dividends declared by the board of directors.

Accepted Answer

A) True 
 B)False

Question 11

In case a corporation's assets are liquidated,the preferred stockholders are paid before common stockholders.

Accepted Answer

A) True 
 B)False

Question 12

Many multinational corporations conduct business in another country by using a(n)________.

Accepted Answer

internatio

Question 13

Which of the following is true of cumulative voting?

Accepted Answer

A) Each shareholder votes the number of shares he or she owns on candidates for each of the positions open for election. 
B) A majority shareholder always elects the entire board of directors. 
C) The cumulative voting method always applies to elections for the board of directors. 
D) A minority shareholder has a better opportunity to elect someone to the board of directors. 
A) Each shareholder votes the number of shares he or she owns on candidates for each of the positions open for election. 
B) A majority shareholder always elects the entire board of directors. 
C) The cumulative voting method always applies to elections for the board of directors. 
D) A minority shareholder has a better opportunity to elect someone to the board of directors.

Question 14

A(n)________ is a member of a board of directors who is not an officer of the corporation.

Accepted Answer

The answer of A(n)________ is a member of a board...

Question 15

Which of the following is true of a note?

Accepted Answer

A) It is a long-term unsecured debt instrument that is based on a corporation's general credit standing. 
B) It is a long-term debt security that is secured by some form of collateral. 
C) It can be either unsecured or secured. 
D) It contains a conversion feature. 
A) It is a long-term unsecured debt instrument that is based on a corporation's general credit standing. 
B) It is a long-term debt security that is secured by some form of collateral. 
C) It can be either unsecured or secured. 
D) It contains a conversion feature.

Question 16

Securities that establish a debtor-creditor relationship in which the corporation borrows money from the investor to whom a debt security is issued are known as ________.

Accepted Answer

A) authorized shares 
B) preferred stocks 
C) common stocks 
D) fixed income securities 
A) authorized shares 
B) preferred stocks 
C) common stocks 
D) fixed income securities

Question 17

A member of the board of directors who is also an officer of the corporation is known as a(n)________.

Accepted Answer

A) inside director 
B) ombudsman 
C) registered agent 
D) shareholder 
A) inside director 
B) ombudsman 
C) registered agent 
D) shareholder

Question 18

Provisions concerning the limitation or regulation of powers of the corporation cannot be included in the articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 19

Fiduciary duties of directors and officers of a corporation include the duty of loyalty and the duty of care.

Accepted Answer

A) True 
 B)False

Question 20

The president of a corporation is an example of a corporate officer.

Accepted Answer

A) True 
 B)False

Exam 16: Corporations and Corporate Governance

Which of the following is true about dividends?

A system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open is known as cumulative voting.

The shareholders are responsible for determining how much will be paid in dividends.

Which of the following is true of corporate bylaws?

Stock for which any missed dividend payments must be paid in the future to the preferred shareholders before the common shareholders can receive any dividends is known as ________ stock.

Which of the following is true of a corporation's incorporation in a state?

Issued shares that have been repurchased by the corporation are referred to as ________ shares.

Usurping a corporate opportunity is a breach of the duty of loyalty that can only be committed by a shareholder.

The shareholders of a corporation have the absolute right to amend the bylaws.

Common stockholders receive dividends declared by the board of directors.

In case a corporation's assets are liquidated,the preferred stockholders are paid before common stockholders.

Many multinational corporations conduct business in another country by using a(n)________.

Which of the following is true of cumulative voting?

A(n)________ is a member of a board of directors who is not an officer of the corporation.

Which of the following is true of a note?

Securities that establish a debtor-creditor relationship in which the corporation borrows money from the investor to whom a debt security is issued are known as ________.

A member of the board of directors who is also an officer of the corporation is known as a(n)________.

Provisions concerning the limitation or regulation of powers of the corporation cannot be included in the articles of incorporation.

Fiduciary duties of directors and officers of a corporation include the duty of loyalty and the duty of care.

The president of a corporation is an example of a corporate officer.

Legal Heritage and the Digital Age

Ethics and Social Responsibility of Business

Courts, Jurisdiction, and Administrative Agencies

Alternative, Judicial, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Torts and Strict Liability

Cyber Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Formation and Requirements of Contracts

Performance and Breach of Contracts

Digital Law and E-Commerce

UCC Sales Contracts, Leases, and Warranties

Credit, Secured Transactions, and Bankruptcy

Small Business, General Partnerships, and Limited Partnerships

Limited Liability Companies, Limited Liability Partnerships, and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Agency Law

Equal Opportunity in Employment

Employment Law and Worker Protection

Labor Law and Immigration Law

Antitrust Law and Unfair Trade Practices

Consumer Protection

Environmental Protection

Real Property and Land Use Regulation

International and World Trade Law

Accountants' Duties and Liability

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