Exam 16: Corporations and Corporate Governance

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

Which of the following constitutes a breach of the duty of loyalty by a corporate officer?

The board of directors makes policy decisions concerning the operation of a corporation.

Once declared,a cash or property dividend cannot be revoked.

Corporations are not allowed to enter into contracts in their own name.

________ corporations are corporations that have many shareholders and whose securities are often traded on organized securities markets.

Any corporation with more than 100 shareholders is automatically considered a C corporation for federal income tax purposes.

Which of the following is true of an S corporation?

Authorized shares that have not been sold by the corporation are known as ________.

A written document in which a shareholder authorizes a person to vote the shareholder's shares at the shareholders' meetings in the event of the shareholder's absence is known as a ________.

________ is a type of equity security that represents the residual value of a corporation.

Private corporations range from small one-owner corporations to large multinational corporations such as Microsoft Corporation.