Exam 41: History and Nature of Corporations

Most of the states have passed ________ to permit their courts to exercise jurisdiction under the decision of the International Shoe case.

Which of the following classes of corporation may not distribute surplus revenue from its operations to its members?

A corporation is a legal entity independent of its owners.

Greater contacts are needed to subject a corporation to property taxation in a state than are needed to subject it to state income and sales taxation.

Rement Corporation is incorporated under the laws of New Jersey.Rement maintains a sales agent in New York City,who makes contracts in New York City.Can New York impose an income tax on Rement's profits from its New York sales at the same rate it taxes income from domestic New York corporations?

Katie Kuric is the only shareholder,director,and officer of two corporations,Multimedia Corporation and Kuric Network Television Corporation (KNT).Multimedia produces television shows and movies.KNT broadcasts television programming on cable.KNT purchases much of its TV programs and movies from Multimedia.KNT often pays Multimedia for the TV shows and movies more than a year after payment is due,without being required to pay interest or a late payment penalty.What risk is Katie taking by allowing KNT to pay Multimedia late?

In the case in the text,Drake Manufacturing Company,Inc.v.Polyflow,Inc. ,why did the court find in favor of the defendant?

Which class of corporation issues stock to its stakeholders and invests in the corporation with the expectation that it will make a return on its investment?

A state may impose its laws on a foreign corporation if such imposition does not violate the Constitution of the United States,notably the Due Process Clause of the Fourteenth Amendment and the Commerce Clause.The leading case in this area is the ________ case.

A foreign corporation is one that conducts its business in a state where it is not incorporated.

Outland Corporation is incorporated in Wyoming,where it has its executive office.It has a manufacturing plant in Utah,and a warehouse in New Mexico,where most of its sales are made.Outland is subject to taxation in:

The corporate form of business has facilitated the rapid growth of development by allowing businesses to attain economies of scale compared to other forms of businesses by:

Wheelies is an auto parts retailer.It operates a retail megastore in a city where the city ordinance prohibits retailers from being open on consecutive Sundays.The management of Wheelies realizes that their maximum sales happen on Sundays.They create a wholly-owned subsidiary,CarBasics,and start leasing the megastore building and its inventory to CarBasics every alternate Sunday.Who is liable for violating the city ordinance?

Nearly all for-profit corporations are incorporated under what laws?

To prove domination,it is ________ to show that there is only one shareholder.

In order to pierce the corporate veil,a creditor needs to show that each shareholder does not actively participate in the management of the corporation.

Not-for-profit corporations have members instead of shareholders and none of their surplus revenue may be distributed to their members.

What is the number of events considered sufficient under the minimum contacts test to confer jurisdiction on a state's courts?

Mr.Blue has invested in SuperMart,Inc.Mr.Blue purchased $5,000 worth of shares or 3% equity in the company.Shortly after investing,SuperMart,Inc.is found guilty of various civil wrongs and a judgment is entered in against the company for 3.1 million dollars.How much liability will Mr.Blue have?

Government-owned corporations are created primarily to allow their owners to have limited liability.