Question 1

Bylaws are the internal rules of management for a corporation.

Accepted Answer

A) True 
 B)False

Question 2

A corporation has an implied power to extend credit to those with whom it has a legal or contractual relationship.

Accepted Answer

A) True 
 B)False

Question 3

Sangfroid Business Corporation can be compelled to dissolve by

Accepted Answer

A) its creditors only. 
B) itself,through its shareholders and directors,only. 
C) itself,through its shareholders and directors,or the state. 
D) the state only 
A) its creditors only. 
B) itself,through its shareholders and directors,only. 
C) itself,through its shareholders and directors,or the state. 
D) the state only

Question 4

The purpose of a corporation may be specified in its articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 5

Raven is a shareholder of Quantum Mechanix Corporation.Raven could normally ex-er-cise appraisal rights if Quantum participated in

Accepted Answer

A) a consolidation. 
B) a dissolution. 
C) a liquidation. 
D) a winding up. 
A) a consolidation. 
B) a dissolution. 
C) a liquidation. 
D) a winding up.

Question 6

Painless Dental Equipment Company is incorporated in Colorado.In Wyoming,Painless 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.

Question 7

Jen files a suit against Kopper Kettle Company.While the suit is pending,Kopper Kettle merges with Luminous Pans,Inc.,with Luminous absorbing Kopper Kettle.Now,liability in the suit,if any,rests with

Accepted Answer

A) Jen. 
B) Kopper Kettle. 
C) Luminous. 
D) no one. 
A) Jen. 
B) Kopper Kettle. 
C) Luminous. 
D) no one.

Question 8

Selecting the state in which to incorporate is an important step in the incorporation procedure.

Accepted Answer

A) True 
 B)False

Question 9

Skyla and Terry want to form and do business as Unique Boutique Corporation.Its existence depends generally on

Accepted Answer

A) city or county corporate codes. 
B) the Entrepreneur's Corporate Handbook. 
C) the federal Administrative Procedure Act. 
D) state law. 
A) city or county corporate codes. 
B) the Entrepreneur's Corporate Handbook. 
C) the federal Administrative Procedure Act. 
D) state law.

Question 10

Like the bylaws of other corporations,the bylaws of Retail Sales,Inc.,

Accepted Answer

A) establish the operating name of the corporation. 
B) establish the value and classes of corporate stock. 
C) were adopted at its first organizational meeting. 
D) were submitted for approval to the public official in charge. 
A) establish the operating name of the corporation. 
B) establish the value and classes of corporate stock. 
C) were adopted at its first organizational meeting. 
D) were submitted for approval to the public official in charge.

Question 11

Precise Device Corporation and Quality Instruments,Inc.,decide to merge.This corporate combination does not require the approval of

Accepted Answer

A) Precise and Quality'sdirectors. 
B) Precise and Quality's officers and employees. 
C) Precise's shareholders. 
D) Quality's shareholders. 
A) Precise and Quality'sdirectors. 
B) Precise and Quality's officers and employees. 
C) Precise's shareholders. 
D) Quality's shareholders.

Question 12

When a sale of assets amounts to what in fact is a consolidation,the ac-quiring corporation inherits the selling corporation's liabilities.

Accepted Answer

A) True 
 B)False

Question 13

A merger and a consolidation are not two legally distinct proceedings.

Accepted Answer

A) True 
 B)False

Question 14

Ruff Games,Inc.,wishes to ac-quire a controlling interest in Smart Toy Com-pany by buying its stock.Smart Toy is

Accepted Answer

A) an alien corporation. 
B) an acquiring corporation. 
C) a receiver. 
D) a target corporation. 
A) an alien corporation. 
B) an acquiring corporation. 
C) a receiver. 
D) a target corporation.

Question 15

An appraisal right is available only when a state statute specifically provides for it.

Accepted Answer

A) True 
 B)False

Question 16

A de jure corporation is one that is not properly formed.

Accepted Answer

A) True 
 B)False

Question 17

A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate for a purpose other than making a profit.SDC is

Accepted Answer

A) a foreign corporation. 
B) an alien corporation. 
C) a nonprofit corporation. 
D) not a corporation. 
A) a foreign corporation. 
B) an alien corporation. 
C) a nonprofit corporation. 
D) not a corporation.

Question 18

George is the founder of Excellent Exotics Corporation.Wilson is a shareholder and director and Bill is an officer.The daily business operations of Excellent Exotics are overseen by

Accepted Answer

A) Bill. 
B) Wilson. 
C) George. 
D) George and Wilson. 
A) Bill. 
B) Wilson. 
C) George. 
D) George and Wilson.

Question 19

A corporation is an artificial being.

Accepted Answer

A) True 
 B)False

Question 20

A business that holds itself out as being a corporation may not be able to deny corporate status,even if it makes no attempt to incorporate.

Accepted Answer

A) True 
 B)False

Exam 24: Corporate Formation, financing, and Termination

Bylaws are the internal rules of management for a corporation.

A corporation has an implied power to extend credit to those with whom it has a legal or contractual relationship.

Sangfroid Business Corporation can be compelled to dissolve by

The purpose of a corporation may be specified in its articles of incorporation.

Raven is a shareholder of Quantum Mechanix Corporation.Raven could normally ex-er-cise appraisal rights if Quantum participated in

Painless Dental Equipment Company is incorporated in Colorado.In Wyoming,Painless is

Jen files a suit against Kopper Kettle Company.While the suit is pending,Kopper Kettle merges with Luminous Pans,Inc.,with Luminous absorbing Kopper Kettle.Now,liability in the suit,if any,rests with

Selecting the state in which to incorporate is an important step in the incorporation procedure.

Skyla and Terry want to form and do business as Unique Boutique Corporation.Its existence depends generally on

Like the bylaws of other corporations,the bylaws of Retail Sales,Inc.,

Precise Device Corporation and Quality Instruments,Inc.,decide to merge.This corporate combination does not require the approval of

When a sale of assets amounts to what in fact is a consolidation,the ac-quiring corporation inherits the selling corporation's liabilities.

A merger and a consolidation are not two legally distinct proceedings.

Ruff Games,Inc.,wishes to ac-quire a controlling interest in Smart Toy Com-pany by buying its stock.Smart Toy is

An appraisal right is available only when a state statute specifically provides for it.

A de jure corporation is one that is not properly formed.

A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate for a purpose other than making a profit.SDC is

George is the founder of Excellent Exotics Corporation.Wilson is a shareholder and director and Bill is an officer.The daily business operations of Excellent Exotics are overseen by

A corporation is an artificial being.

A business that holds itself out as being a corporation may not be able to deny corporate status,even if it makes no attempt to incorporate.

The Legal and Constitutional Environment of Business

Courts and Alternative Dispute Resolution

Ethics and Business Decision Making

Tort Law

Intellectual Property

Internet Law,social Media,and Privacy

Criminal Law and Cyber Crime

Nature and Classification

Agreement in Traditional and E-Contracts

Consideration, capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Checks and Banking in the Digital Age

Secured Transactions

Creditors Rights and Bankruptcy

Agency Relationships

Employment Law

Sole Proprietorships, partnerships, and Limited Liability Companies

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, and Corporate Governance

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants and Other Professionals

International Law in a Global Economy

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