Exam 16: Corporations and Corporate Governance

Explain the concepts of winding up,liquidation,and termination.

A corporation is referred to as a(n)________ corporation in the state in which it was formed.

A corporation is dissolved upon the effective date of the articles of dissolution.

The duty of loyalty requires directors and officers to subordinate their personal interests to those of the corporation and its shareholders.

A contract between a corporation and a holder that contains the terms of a debt security is known as a(n)________.

A panel of persons who are elected by shareholders that make policy decisions concerning the operation of a corporation is known as the ________.

Which of the following must be included in the articles of incorporation?

The bylaws of a corporation must be filed with a government official.

The articles of incorporation must contain the name and address of every incorporator.

Only outstanding shares have the right to vote.

Shareholders have unlimited liability for the debts and obligations of a corporation.

A note is a long-term debt security that is secured by some form of collateral.

Which of the following is a definition of a foreign corporation?

The ________ Act of 2002 is a federal statute enacted by Congress to improve corporate governance.

An S corporation cannot have more than 100 shareholders.

Which of the following is true of shareholders?

Shareholder resolutions are usually made when the corporation is soliciting proxies from its shareholders.

A ________ is a preferred stockholder's right to be paid a stated dollar amount if a corporation is dissolved and its assets redistributed.

After a corporation has commenced business or issued shares,the corporation can be ________ if the board of directors recommends dissolution and a majority of voting shareholders favors dissolution.

________ is a doctrine that says if a shareholder dominates a corporation and uses it for improper purposes,a court of equity can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations.