Exam 36: Corporate Formation and Financing

A corporate name cannot contain the word University if it is not authorized to conduct the business of granting undergraduate and graduate degrees.

A corporation in the United States that has been incorporated in another country is referred to as a(n)________ corporation.

Which of the following must be included in the articles of incorporation?

A long-term debt security that is secured by some form of collateral is referred to as a ________.

Common stockholders receive dividends declared by the board of directors.

Any corporation with more than 100 shareholders is automatically considered a C corporation for federal income tax purposes.

According to the RMBCA,only corporations with 50 or fewer shareholders may elect statutory close corporation status.

Publicly held corporations are corporations run by the government.

________ are powers beyond express powers that allow a corporation to accomplish its corporate purpose.

Which of the following would generally be considered an express power of a corporation?

Only outstanding shares have the right to vote.

Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are known as ________.

What are the express powers of a corporation?

________ is a preferred stockholder right to be paid a stated dollar amount if a corporation is dissolved and its assets redistributed.

The articles of incorporation must contain the name and address of every incorporator.

The WaterGlove Corporation issues ________ preferred stock that requires payment of a quarterly dividend of $5.00 per share.The WaterGlove Corporation falls behind with four quarterly payments,i.e.,$20.00 per share of preferred stock.The next quarter,the corporation makes a profit of $25.00 per share.The corporation must pay $20.00 per share of arrearages to the preferred shareholders plus this quarter's payment of $5.00 per share.

A(n)________ is a person who organizes and starts a corporation,negotiates and enters into contracts in advance of its formation,finds the initial investors to finance the corporation,and so forth.

The board of directors makes policy decisions concerning the operation of a corporation.

Stock that permits a corporation to buy back the preferred stock at some future date is known as ________.

Which of the following is true of an amendment of the articles of incorporation that does not affect the rights attached to shares?