Question 1

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.​

Accepted Answer

A) True 
 B)False

Question 2

In many states, close corporations have more flexibility in determining their rules of operation.​

Accepted Answer

A) True 
 B)False

Question 3

A vacancy on the board of directors can be filled by the board itself.​

Accepted Answer

A) True 
 B)False

Question 4

The executive officers represent the ultimate authority in every corporation.​

Accepted Answer

A) True 
 B)False

Question 5

Gina is a director on the board of Home Furnishings Inc. As a director, she may not​

Accepted Answer

A)  ​authorize major corporate policy decisions. 
B)  ​decide to issue stock and bonds, and declare dividends. 
C)  ​select and remove corporate officers. 
D)  ​subordinate the firm's welfare to her personal interests. 
A)  ​authorize major corporate policy decisions. 
B)  ​decide to issue stock and bonds, and declare dividends. 
C)  ​select and remove corporate officers. 
D)  ​subordinate the firm's welfare to her personal interests.

Question 6

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. This most likely warrants​

Accepted Answer

A)  ​no penalties or sanctions. 
B)  ​the imposition of a fine on Bay City. 
C)  ​the imprisonment of Bay City's shareholders. 
D)  ​the piercing of Bay City's corporate veil. 
A)  ​no penalties or sanctions. 
B)  ​the imposition of a fine on Bay City. 
C)  ​the imprisonment of Bay City's shareholders. 
D)  ​the piercing of Bay City's corporate veil.

Question 7

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form​

Accepted Answer

A)  ​an alien corporation. 
B)  ​a close corporation. 
C)  ​an S corporation. 
D)  ​a private corporation. 
A)  ​an alien corporation. 
B)  ​a close corporation. 
C)  ​an S corporation. 
D)  ​a private corporation.

Question 8

Vince buys 500 shares of common stock in Water Services, Inc. As a shareholder of record, Vince owns a proportionate interest with regard to Water's​

Accepted Answer

A)  ​net assets. 
B)  ​control. 
C)  ​earnings. 
D)  ​all of the choices. 
A)  ​net assets. 
B)  ​control. 
C)  ​earnings. 
D)  ​all of the choices.

Question 9

Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.​

Accepted Answer

A) True 
 B)False

Question 10

Neil, a majority shareholder of Oil Changes Inc., effectively excludes Polly, a minority shareholder, from the benefits of stock ownership in the firm. Polly can​

Accepted Answer

A)  ​assert the business judgment rule. 
B)  ​bring a suit for damages. 
C)  ​exercise de facto control. 
D)  ​force a cumulative vote. 
A)  ​assert the business judgment rule. 
B)  ​bring a suit for damages. 
C)  ​exercise de facto control. 
D)  ​force a cumulative vote.

Question 11

The board of Management Consultants, Inc., can delegate some of its responsibilities to​

Accepted Answer

A)  ​the firm's incorporators. 
B)  ​the firm's officers. 
C)  ​the firm's shareholders. 
D)  ​no one. 
A)  ​the firm's incorporators. 
B)  ​the firm's officers. 
C)  ​the firm's shareholders. 
D)  ​no one.

Question 12

Rita and Susan want to form and do business as Trips & Travel, Inc. They will serve as the firm's directors and officers, and will initially hold all of the stock in the company. A corporation is owned by​

Accepted Answer

A)  ​the board of directors. 
B)  ​the officers. 
C)  ​the employees. 
D)  ​the shareholders. 
A)  ​the board of directors. 
B)  ​the officers. 
C)  ​the employees. 
D)  ​the shareholders.

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

In many states, close corporations have more flexibility in determining their rules of operation.

A vacancy on the board of directors can be filled by the board itself.

The executive officers represent the ultimate authority in every corporation.

Gina is a director on the board of Home Furnishings Inc. As a director, she may not

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. This most likely warrants

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form

Vince buys 500 shares of common stock in Water Services, Inc. As a shareholder of record, Vince owns a proportionate interest with regard to Water's

Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.

Neil, a majority shareholder of Oil Changes Inc., effectively excludes Polly, a minority shareholder, from the benefits of stock ownership in the firm. Polly can

The board of Management Consultants, Inc., can delegate some of its responsibilities to

Rita and Susan want to form and do business as Trips & Travel, Inc. They will serve as the firm's directors and officers, and will initially hold all of the stock in the company. A corporation is owned by

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 corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.​

In many states, close corporations have more flexibility in determining their rules of operation.​

A vacancy on the board of directors can be filled by the board itself.​

The executive officers represent the ultimate authority in every corporation.​

Gina is a director on the board of Home Furnishings Inc. As a director, she may not​

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. This most likely warrants​

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form​

Vince buys 500 shares of common stock in Water Services, Inc. As a shareholder of record, Vince owns a proportionate interest with regard to Water's​

Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.​

Neil, a majority shareholder of Oil Changes Inc., effectively excludes Polly, a minority shareholder, from the benefits of stock ownership in the firm. Polly can​

The board of Management Consultants, Inc., can delegate some of its responsibilities to​

Rita and Susan want to form and do business as Trips & Travel, Inc. They will serve as the firm's directors and officers, and will initially hold all of the stock in the company. A corporation is owned by​

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 corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

In many states, close corporations have more flexibility in determining their rules of operation.

A vacancy on the board of directors can be filled by the board itself.

The executive officers represent the ultimate authority in every corporation.

Gina is a director on the board of Home Furnishings Inc. As a director, she may not

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. This most likely warrants

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form

Vince buys 500 shares of common stock in Water Services, Inc. As a shareholder of record, Vince owns a proportionate interest with regard to Water's

Cumulative voting refers to the accumulation of proposals presented annually for a shareholders' vote.

Neil, a majority shareholder of Oil Changes Inc., effectively excludes Polly, a minority shareholder, from the benefits of stock ownership in the firm. Polly can

The board of Management Consultants, Inc., can delegate some of its responsibilities to

Rita and Susan want to form and do business as Trips & Travel, Inc. They will serve as the firm's directors and officers, and will initially hold all of the stock in the company. A corporation is owned by