Exam 36: Corporate Formation and Financing

A(n)________ is a fictitious legal entity that is created according to statutory requirements.

Which of the following acts is seen as conclusive proof for the existence of a corporation?

Which of the following is true of treasury shares?

Convertible preferred stock permits the preferred stockholders to convert their shares into common stock.

Judicial dissolution of a corporation can be instituted by the attorney general of the state of incorporation if the corporation ________.

The shareholders of the corporation have the absolute right to amend bylaws.

A(n)________ is a clause that can be included in the articles of incorporation that permits the corporation to engage in any activity permitted by law.

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

Describe how the judiciary in Delaware is favorable to large corporations?

According to priority,which of the following claimants is the last to be paid after assets have been liquidated of a corporation?

In debt securities,the corporation is the debtor and the holder is the creditor.

Treasury shares cannot be issued by the corporation.

A C corporation pays taxes at the corporate level and the shareholder's level.

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

Which of the following is true of a C Corporation?

Dissolution of a corporation that has begun business or issued shares upon recommendation of the board of directors and a majority vote of the shares entitled to vote is known as ________.

The earnings of a not-for-profit corporation are distributed among its members.

Preferred stockholders are given the right to vote for the board of directors of the corporation.

Foreign corporations can elect to be taxed as an S corporation.

The registered office in the articles of incorporation must be the same as the corporation's place of business.