Question 1

The U.S. Postal Service is a public corporation.

Accepted Answer

A) True 
 B)False

Question 2

The corporation is a creature of statute.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Preferred stock is an equity security with preferences.

Accepted Answer

A) True 
 B)False

Question 6

The shares of Home Mortgage Corporation are publicly traded in securities markets. Home Mortgage Corporation is

Accepted Answer

A)  ​a close corporation. 
B)  ​a privately held corporation. 
C)  ​a public corporation. 
D)  ​a publicly held corporation. 
A)  ​a close corporation. 
B)  ​a privately held corporation. 
C)  ​a public corporation. 
D)  ​a publicly held corporation.

Question 7

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.

Question 8

PrimarySource.com Corporation is a new online, textbook, and school supply business. How can PrimarySource.com obtain capital to finance its operations?

Accepted Answer

Generally, to obtain capital, a corporat

Question 9

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 10

An alien corporation is a corporation formed by a local corporation's competitor.

Accepted Answer

A) True 
 B)False

Question 11

In the absence of express constitutional, statutory, or other provisions, the corporation has no implied powers.

Accepted Answer

A) True 
 B)False

Question 12

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto acts.

Accepted Answer

A) True 
 B)False

Question 13

A corporation whose shares are held by relatively few persons is a close corporation.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

An agreement between shareholders can restrict the transfer of a close corporation's stock.

Accepted Answer

A) True 
 B)False

Question 17

Ben incorporates his app business as Clickology, Inc. Under most state corporation statutes, Clickology can have

Accepted Answer

A)  ​only a finite, yet-to-be-determined existence. 
B)  ​only a one-year, nonrenewable existence. 
C)  ​only a one-year, renewable existence. 
D)  ​perpetual existence. 
A)  ​only a finite, yet-to-be-determined existence. 
B)  ​only a one-year, nonrenewable existence. 
C)  ​only a one-year, renewable existence. 
D)  ​perpetual existence.

Question 18

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

Accepted Answer

A)  ​a natural person. 
B)  ​a tangible thing. 
C)  ​an artificial being. 
D)  ​a visible contemplation. 
A)  ​a natural person. 
B)  ​a tangible thing. 
C)  ​an artificial being. 
D)  ​a visible contemplation.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is

Accepted Answer

A)  ​a domestic corporation. 
B)  ​a foreign corporation. 
C)  ​an alien corporation. 
D)  ​a non-entity. 
A)  ​a domestic corporation. 
B)  ​a foreign corporation. 
C)  ​an alien corporation. 
D)  ​a non-entity.

Exam 5: Corporate Formation and Financing

The U.S. Postal Service is a public corporation.

The corporation is a creature of statute.

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

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

Preferred stock is an equity security with preferences.

The shares of Home Mortgage Corporation are publicly traded in securities markets. Home Mortgage Corporation is

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

PrimarySource.com Corporation is a new online, textbook, and school supply business. How can PrimarySource.com obtain capital to finance its operations?

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?

An alien corporation is a corporation formed by a local corporation's competitor.

In the absence of express constitutional, statutory, or other provisions, the corporation has no implied powers.

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto acts.

A corporation whose shares are held by relatively few persons is a close corporation.

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

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

An agreement between shareholders can restrict the transfer of a close corporation's stock.

Ben incorporates his app business as Clickology, Inc. Under most state corporation statutes, Clickology can have

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

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

Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is

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