Question 1

A director must abstain from voting on a proposed transaction in which he or she has a personal interest.​

Accepted Answer

A) True 
 B)False  True

Question 2

Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to​

Accepted Answer

A)  ​assert the business judgment rule. 
B)  ​bring a shareholder's derivative suit. 
C)  ​exercise de facto control. 
D)  ​participate in a cumulative vote. 
A)  ​assert the business judgment rule. 
B)  ​bring a shareholder's derivative suit. 
C)  ​exercise de facto control. 
D)  ​participate in a cumulative vote. C

Question 3

​Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Accepted Answer

A)  ​a natural being. 
B)  ​a tangible thing. 
C)  ​an artificial legal person. 
D)  ​a non-entity. 
A)  ​a natural being. 
B)  ​a tangible thing. 
C)  ​an artificial legal person. 
D)  ​a non-entity. C

Question 4

With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.​

Accepted Answer

A) True 
 B)False

Question 5

In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable.​

Accepted Answer

A) True 
 B)False

Question 6

Sheila is a shareholder of Travels & Trips Inc. She has the right to inspect corporate books and records​

Accepted Answer

A)  ​only if she is also a director. 
B)  ​without restrictions. 
C)  ​for a proper purpose. 
D)  ​under no circumstances. 
A)  ​only if she is also a director. 
B)  ​without restrictions. 
C)  ​for a proper purpose. 
D)  ​under no circumstances.

Question 7

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?​

Accepted Answer

Yes, the corporations can be held liable

Question 8

Sean is the incorporator of Twisty Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty are overseen by​

Accepted Answer

A)  ​Velma. 
B)  ​Ross. 
C)  ​Sean. 
D)  ​Phyllis. 
A)  ​Velma. 
B)  ​Ross. 
C)  ​Sean. 
D)  ​Phyllis.

Question 9

All forms of business organizations are treated as legal entities separate from their owners.​

Accepted Answer

A) True 
 B)False

Question 10

Gavin is a shareholder of Houseboats Inc. with preemptive rights. With these rights, he can​

Accepted Answer

A)  ​buy a prorated share of a new issue of stock before other buyers. 
B)  ​choose to have the firm act exclusively in a certain area. 
C)  ​preempt managerial decisions that affect shareholders. 
D)  ​sell a prorated share of a new issue of stock before other sellers. 
A)  ​buy a prorated share of a new issue of stock before other buyers. 
B)  ​choose to have the firm act exclusively in a certain area. 
C)  ​preempt managerial decisions that affect shareholders. 
D)  ​sell a prorated share of a new issue of stock before other sellers.

Question 11

The board of directors makes corporate policy decisions.​

Accepted Answer

A) True 
 B)False

Question 12

A corporation is not liable for the misconduct of its agents, officers, or employees.​

Accepted Answer

A) True 
 B)False

Question 13

The articles of incorporation serve as a primary source of authority for a corporation's business operations.​

Accepted Answer

A) True 
 B)False

Question 14

Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be​

Accepted Answer

A)  ​one director. 
B)  ​three directors. 
C)  ​four directors. 
D)  ​all of the directors. 
A)  ​one director. 
B)  ​three directors. 
C)  ​four directors. 
D)  ​all of the directors.

Question 15

The true ownership of a corporation is represented by common stock.​

Accepted Answer

A) True 
 B)False

Question 16

If a corporation has S corporation status, it must pay income taxes at the corporate level.​

Accepted Answer

A) True 
 B)False

Question 17

Corporate business matters are presented at a shareholders' meeting of Fitness Gyms Inc., and other corporations, in the form of​

Accepted Answer

A)  ​resolutions. 
B)  ​proxies. 
C)  ​articles of incorporation. 
D)  ​bylaws. 
A)  ​resolutions. 
B)  ​proxies. 
C)  ​articles of incorporation. 
D)  ​bylaws.

Question 18

Express powers of a corporation can be found in state corporation statutes.​

Accepted Answer

A) True 
 B)False

Question 19

Shareholders must approve fundamental changes affecting a corporation.​

Accepted Answer

A) True 
 B)False

Question 20

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely​

Accepted Answer

A)  ​a corporation by estoppel. 
B)  ​a de facto corporation. 
C)  ​a de jure corporation. 
D)  ​a benefit corporation. 
A)  ​a corporation by estoppel. 
B)  ​a de facto corporation. 
C)  ​a de jure corporation. 
D)  ​a benefit corporation.

A director must abstain from voting on a proposed transaction in which he or she has a personal interest.

Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to

Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.

In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable.

Sheila is a shareholder of Travels & Trips Inc. She has the right to inspect corporate books and records

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Sean is the incorporator of Twisty Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty are overseen by

All forms of business organizations are treated as legal entities separate from their owners.

Gavin is a shareholder of Houseboats Inc. with preemptive rights. With these rights, he can

The board of directors makes corporate policy decisions.

A corporation is not liable for the misconduct of its agents, officers, or employees.

The articles of incorporation serve as a primary source of authority for a corporation's business operations.

Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be

The true ownership of a corporation is represented by common stock.

If a corporation has S corporation status, it must pay income taxes at the corporate level.

Corporate business matters are presented at a shareholders' meeting of Fitness Gyms Inc., and other corporations, in the form of

Express powers of a corporation can be found in state corporation statutes.

Shareholders must approve fundamental changes affecting a corporation.

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Filters

Exam 19: Corporations

A director must abstain from voting on a proposed transaction in which he or she has a personal interest.​

Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to​

​Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.​

In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable.​

Sheila is a shareholder of Travels & Trips Inc. She has the right to inspect corporate books and records​

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?​

Sean is the incorporator of Twisty Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty are overseen by​

All forms of business organizations are treated as legal entities separate from their owners.​

Gavin is a shareholder of Houseboats Inc. with preemptive rights. With these rights, he can​

The board of directors makes corporate policy decisions.​

A corporation is not liable for the misconduct of its agents, officers, or employees.​

The articles of incorporation serve as a primary source of authority for a corporation's business operations.​

Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be​

The true ownership of a corporation is represented by common stock.​

If a corporation has S corporation status, it must pay income taxes at the corporate level.​

Corporate business matters are presented at a shareholders' meeting of Fitness Gyms Inc., and other corporations, in the form of​

Express powers of a corporation can be found in state corporation statutes.​

Shareholders must approve fundamental changes affecting a corporation.​

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Filters

A director must abstain from voting on a proposed transaction in which he or she has a personal interest.

Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to

Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

With preemptive rights, shareholders can preempt the decisions of directors and officers with respect to corporate policy.

In certain instances of fraud, a court may "pierce the corporate veil" to hold the shareholders individually liable.

Sheila is a shareholder of Travels & Trips Inc. She has the right to inspect corporate books and records

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Sean is the incorporator of Twisty Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty are overseen by

All forms of business organizations are treated as legal entities separate from their owners.

Gavin is a shareholder of Houseboats Inc. with preemptive rights. With these rights, he can

The board of directors makes corporate policy decisions.

A corporation is not liable for the misconduct of its agents, officers, or employees.

The articles of incorporation serve as a primary source of authority for a corporation's business operations.

Security Insurance, Inc. has a board of five directors. Security's bylaws do not state any quorum requirements. In most states, a quorum for Security's board meetings would be

The true ownership of a corporation is represented by common stock.

If a corporation has S corporation status, it must pay income taxes at the corporate level.

Corporate business matters are presented at a shareholders' meeting of Fitness Gyms Inc., and other corporations, in the form of

Express powers of a corporation can be found in state corporation statutes.

Shareholders must approve fundamental changes affecting a corporation.

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely