Exam 41: History and Nature of Corporations

Anderson incorporated his new company,Pearl,Inc. ,in the business of manufacturing rubber.After some years,he opened his own subsidiary rubber manufacturing company.The new subsidiary company is a success.Meanwhile,the workers of Pearl,Inc.claimed that payment of bonus is due and they are demanding the same from the subsidiary company.In this case,are both Pearl,Inc.and its subsidiary liable?

Ala Foreign Corporation is incorporated in Alabama.However,it is running 90 percent of its operations from Indiana.Such a type of corporation is called a(n):

Big Corporation (BC)was dominated by its president,Mr.Vincent.He used his dominance for an improper purpose-defrauding lenders to the corporation.As a result,a court can:

Fantase Corporation has a union contract.To avoid the contract,the shareholders plan to form a new corporation.They also elect to transfer their business interest to the new corporation.Is the new corporation liable to the employees for the union contract?

What was the name of the document given to early American corporations by state legislatures that permitted them to operate as a corporation?

Transfers of corporate assets to shareholders for less than fair market value is called "looting."

Shareholders have ________ liability.

The law of piercing the corporate veil is an example of a ________ law protecting the creditors of corporations.

A pastor of a church (a nonprofit corporation)believes that his salary is too small to cover his meager expenses.When repeated requests to superiors do not lead to a salary increase,he starts supplementing his salary with church donations.What risk is he running?

Which of the following legal provisions treats a corporation as a person?