Question 1

A quasi-public corporation is one that is organized for charitable or benevolent purposes.

Accepted Answer

A) True 
 B)False

Question 2

Most states have a general corporation code,and anyone who satisfies code requirements and files the necessary papers with the government may automatically become a corporation.

Accepted Answer

A) True 
 B)False

Question 3

A holder of a single share of stock who objects to a merger has the power to stop the merger.

Accepted Answer

A) True 
 B)False

Question 4

For the purpose of determining the right to bring a lawsuit in federal court,a corporation is a citizen of any state in which it has been incorporated and of the state where it has its principal place of business.

Accepted Answer

A) True 
 B)False

Question 5

What is not a correct statement concerning promoters?

Accepted Answer

A)  Promoters are generally active before the corporation is formed. 
B)  Two (2)or more promoters are required to form a corporation. 
C)  Promoters are fiduciaries with respect to the corporation and its shareholders. 
D)  Promoters are liable for any torts that they commit while promoting the corporation. 
A)  Promoters are generally active before the corporation is formed. 
B)  Two (2)or more promoters are required to form a corporation. 
C)  Promoters are fiduciaries with respect to the corporation and its shareholders. 
D)  Promoters are liable for any torts that they commit while promoting the corporation.

Question 6

The corporate form of business continues regardless of changes in stock ownership.

Accepted Answer

A) True 
 B)False

Question 7

A corporation is considered a person for purposes of the due process clause of the United States Constitution.

Accepted Answer

A) True 
 B)False

Question 8

_________ of a corporation may occur when management is deadlocked and the deadlock cannot be broken by the shareholders.

Accepted Answer

A)  Bankruptcy 
B)  Consolidation 
C)  Reinstatement 
D)  Judicial dissolution 
A)  Bankruptcy 
B)  Consolidation 
C)  Reinstatement 
D)  Judicial dissolution

Question 9

Subject to constitutional limitations,corporations may be regulated by statutes.

Accepted Answer

A) True 
 B)False

Question 10

Subchapter S corporations have the benefits of limited liability as in partnerships and are taxed as corporations.

Accepted Answer

A) True 
 B)False

Question 11

The rules and regulations enacted by a corporation to govern the affairs of the corporation and its shareholders,directors and officers are called:

Accepted Answer

A)  articles of incorporation. 
B)  corporate management agreements. 
C)  bylaws. 
D)  articles of organization. 
A)  articles of incorporation. 
B)  corporate management agreements. 
C)  bylaws. 
D)  articles of organization.

Question 12

If there is a consolidation of corporations A,B,and C:

Accepted Answer

A)  corporations B and C are absorbed into corporation A,and corporation A continues to exist. 
B)  all of the corporations continue to exist. 
C)  all corporations continue to exist,but corporation A owns all of the stock of corporations B and C. 
D)  corporations A,B,and C cease to exist,and a new corporation with the property and assets of the old corporations comes into being. 
A)  corporations B and C are absorbed into corporation A,and corporation A continues to exist. 
B)  all of the corporations continue to exist. 
C)  all corporations continue to exist,but corporation A owns all of the stock of corporations B and C. 
D)  corporations A,B,and C cease to exist,and a new corporation with the property and assets of the old corporations comes into being.

Exam 44: Corporate Formation

A quasi-public corporation is one that is organized for charitable or benevolent purposes.

Most states have a general corporation code,and anyone who satisfies code requirements and files the necessary papers with the government may automatically become a corporation.

A holder of a single share of stock who objects to a merger has the power to stop the merger.

For the purpose of determining the right to bring a lawsuit in federal court,a corporation is a citizen of any state in which it has been incorporated and of the state where it has its principal place of business.

What is not a correct statement concerning promoters?

The corporate form of business continues regardless of changes in stock ownership.

A corporation is considered a person for purposes of the due process clause of the United States Constitution.

_________ of a corporation may occur when management is deadlocked and the deadlock cannot be broken by the shareholders.

Subject to constitutional limitations,corporations may be regulated by statutes.

Subchapter S corporations have the benefits of limited liability as in partnerships and are taxed as corporations.

The rules and regulations enacted by a corporation to govern the affairs of the corporation and its shareholders,directors and officers are called:

If there is a consolidation of corporations A,B,and C:

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters