Exam 33: Nature and Formation of Corporations

Carroll, Daniels, and Elmore organized their veterinary practice as a professional corporation.This organization of professionals will be treated as a partnership for liability purposes.

Courts have responded by piercing the veil when the shareholders have:

The possible consequences of a defective incorporation include which of the following?

Which of the following is untrue regarding closely held corporations?

Most states have special incorporation statutes governing nonprofit corporations.

Under the Statutory Close Corporation Supplement to the MBCA, a close corporation must have bylaws on file with the office of the secretary of state or some other public office.

Subchapter S is a section of the Model Business Corporation Act that provides special benefits for small corporations.

The "corporate veil" is most likely to be pierced in the case of closely held corporations and in parent-subsidiary relationships.

All of the following are true of promoters of a corporation EXCEPT:

Which of the following is not a requirement of a Subchapter S corporation?

Under the RMBCA, a pre-incorporation subscription may be revoked at any time without the consent of the subscribers.

Which of the following is NOT a characteristic of the corporate form of doing business?

A promoter who enters a preincorporation contract in the name of the corporation usually remains liable on the contract even if the corporation adopts it.

Promoters have a fiduciary relationship with the corporation.

The incorporators would typically do which of the following?

The City of Chicago would best be described as which of the following?

A corporation formed in substantial compliance with the incorporation statute and the required organizational procedures is a:

In many states, the services of the incorporators are perfunctory and short-lived.

Delaware is a popular state for the headquarters of corporations because:

Corporations have achieved dominance in which of the following ways?