Exam 16: Corporations and Corporate Governance

An S corporation election is made by filing a Form 2553 with the Federal Trade Commission.

Corporations cannot provide their articles of incorporation online.

________ is a system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open.

The election of directors of the corporation can be held by electronic transmission.

Which of the following is true of a C Corporation?

When is the annual shareholders' meeting held?

A long-term debt security that is secured by some form of collateral is referred to as a ________.

According to priority,which of the following claimants is the last to be paid after a corporation's assets have been liquidated?

A detailed set of rules adopted by the board of directors after a corporation is incorporated that contains provisions for managing the business and the affairs of the corporation are referred to as ________.

A corporation can be incorporated in several states.

________ are employees of a corporation who are appointed by the board of directors to manage the day-to-day operations of the corporation.

Convertible preferred stock permits the preferred stockholders to convert their shares into common stock.

Suppose Lisa owns 1,000 shares of a corporation.Assume that four directors are to be elected to the board.With ________ voting,Lisa can multiply the number of shares she owns (1,000)by the number of directors to be elected (four),and she can cast all the resulting votes (4,000)for one candidate or split them among candidates as she determines.

An S corporation must pay federal income tax at the corporate level.

Jameson works for Fishy-Mart Corporation,a chain of superstores that sells large quantities of seafood.His job is to locate future sites for Fishy-Mart stores.Jameson finds a piece of real estate near a coastline that would make a great site for a Fishy-Mart store.He asks his friend to purchase the property from its current owner and has a secret agreement with his friend to split the profits when he sells the property to Fishy-Mart.Jameson,without disclosing his interest in the property,recommends the site to Fishy-Mart,which then purchases the property from Jameson's friend.The friend splits the profits with Jameson.What breach of the duty of loyalty has Jameson committed?

A director or an officer who breaches the duty of care is personally liable to the corporation and its shareholders for any damages caused by the breach.

The ________ own(s)a corporation.

An S corporation can have nonresident aliens as shareholders.

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

Shareholders do not have to attend a shareholders' meeting to vote.