Question 1

The person responsible for incorporation of a corporation is known as a(n)________.

Accepted Answer

A) promoter 
B) shareholder 
C) incorporator 
D) director 
A) promoter 
B) shareholder 
C) incorporator 
D) director

Question 2

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

Accepted Answer

A) legal aides 
B) cartel 
C) consortium 
D) board of directors 
A) legal aides 
B) cartel 
C) consortium 
D) board of directors

Question 3

Which of the following is true of corporate bylaws?

Accepted Answer

A) They only contain rules on how the corporation can deal with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors, or shareholders of the corporation. 
D) They do not have to be filed with any government official. 
A) They only contain rules on how the corporation can deal with the government. 
B) They are only adopted by the shareholders of the corporation. 
C) They are not binding on the directors, or shareholders of the corporation. 
D) They do not have to be filed with any government official.

Question 4

A foreign corporation can conduct commerce in a state if it obtains a certificate of authority from the state.

Accepted Answer

A) True 
 B)False

Question 5

An S corporation cannot have more than 100 shareholders.

Accepted Answer

A) True 
 B)False

Question 6

A corporation that is incorporated in another country is known as a(n)________.

Accepted Answer

A) alien corporation 
B) public corporation 
C) domestic corporation 
D) municipal corporation 
A) alien corporation 
B) public corporation 
C) domestic corporation 
D) municipal corporation

Question 7

Even if a corporation does no business in Delaware,it can obtain the benefits of Delaware corporation law by incorporating in Delaware.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) A corporation with incorporations in multiple states. 
B) A corporation in the state in which it is incorporated. 
C) A corporation in states other than the one in which it is incorporated. 
D) A corporation in the United States which has been incorporated in another country. 
A) A corporation with incorporations in multiple states. 
B) A corporation in the state in which it is incorporated. 
C) A corporation in states other than the one in which it is incorporated. 
D) A corporation in the United States which has been incorporated in another country.

Question 9

Which of the following shares have the right to vote?

Accepted Answer

A) unissued shares 
B) treasury shares 
C) outstanding shares 
D) liquidated shares 
A) unissued shares 
B) treasury shares 
C) outstanding shares 
D) liquidated shares

Question 10

A corporation reimbursing its employees for expenses would fall under its implied powers.

Accepted Answer

A) True 
 B)False

Question 11

Only 20 percent of the Fortune 500 companies are incorporated in Delaware.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of an S corporation?

Accepted Answer

A) The corporation can have no more than 100 shareholders. 
B) Only foreign corporations with more than 10 shareholders can be an S corporation. 
C) They are taxed at the corporate level. 
D) The corporation must be a member of an affiliated group of corporations. 
A) The corporation can have no more than 100 shareholders. 
B) Only foreign corporations with more than 10 shareholders can be an S corporation. 
C) They are taxed at the corporate level. 
D) The corporation must be a member of an affiliated group of corporations.

Question 13

Shareholders are liable for the debt and obligations of a corporation.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following criteria must be met for a company to be an S corporation?

Accepted Answer

A) Shareholders must be other corporations or partnerships. 
B) Nonresident aliens cannot be shareholders. 
C) The corporation must have more than 100 shareholders. 
D) The corporation must have more than one class of stock. 
A) Shareholders must be other corporations or partnerships. 
B) Nonresident aliens cannot be shareholders. 
C) The corporation must have more than 100 shareholders. 
D) The corporation must have more than one class of stock.

Question 15

Bylaws of a corporation must be filed with a government official.

Accepted Answer

A) True 
 B)False

Question 16

An S corporation can have nonresident aliens as shareholders.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) bond 
B) indenture 
C) debenture 
D) liquidation 
A) bond 
B) indenture 
C) debenture 
D) liquidation

Question 18

Compare and contrast publicly held and closely held corporations.

Accepted Answer

Publicly held corporations have many sha

Question 19

Which of the following is true of the Delaware General Corporation Law?

Accepted Answer

A) It makes it easier for other companies to take over a Delaware corporation. 
B) The legislature seldom amends the corporation code to meet the demands of big businesses. 
C) The statute is particularly written to be of benefit to individual businesses and consumers. 
D) It is the most advanced corporation law in the country. 
A) It makes it easier for other companies to take over a Delaware corporation. 
B) The legislature seldom amends the corporation code to meet the demands of big businesses. 
C) The statute is particularly written to be of benefit to individual businesses and consumers. 
D) It is the most advanced corporation law in the country.

Question 20

Which of the following must be true for a corporation to elect statutory close corporation status?

Accepted Answer

A) The corporation must have 100 or more shareholders. 
B) The corporation must have 50 or fewer shareholders. 
C) The corporation must contain a board of directors. 
D) The corporation must have a set of bylaws. 
A) The corporation must have 100 or more shareholders. 
B) The corporation must have 50 or fewer shareholders. 
C) The corporation must contain a board of directors. 
D) The corporation must have a set of bylaws.

Exam 36: Corporate Formation and Financing

The person responsible for incorporation of a corporation is known as a(n)________.

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

Which of the following is true of corporate bylaws?

A foreign corporation can conduct commerce in a state if it obtains a certificate of authority from the state.

An S corporation cannot have more than 100 shareholders.

A corporation that is incorporated in another country is known as a(n)________.

Even if a corporation does no business in Delaware,it can obtain the benefits of Delaware corporation law by incorporating in Delaware.

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

Which of the following shares have the right to vote?

A corporation reimbursing its employees for expenses would fall under its implied powers.

Only 20 percent of the Fortune 500 companies are incorporated in Delaware.

Which of the following is true of an S corporation?

Shareholders are liable for the debt and obligations of a corporation.

Which of the following criteria must be met for a company to be an S corporation?

Bylaws of a corporation must be filed with a government official.

An S corporation can have nonresident aliens as shareholders.

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

Compare and contrast publicly held and closely held corporations.

Which of the following is true of the Delaware General Corporation Law?

Which of the following must be true for a corporation to elect statutory close corporation status?

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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