Question 1

If Able Corporation purchases all of the stock of Beta Corporation rather than all of its assets,there is now a change in Beta Corporation's legal status.

Accepted Answer

A) True 
 B)False

Question 2

Larson & Son manufactured welders that frequently malfunctioned,setting clothing on fire and causing serious burns.Larson & Son sold all of its assets to Swenson Co.,which continued to manufacture the Larson welder product line.Eleven months after Swenson's purchase,one of Larson's customers sued Swenson for injuries caused by a welder purchased from Larson,six months prior to the purchase by Swenson.Under the circumstances,Swenson Co.:

Accepted Answer

A) cannot be held liable, because it is a corporation. 
B) cannot be held liable, because it did not manufacture the welder in question. 
C) might be held liable in some states under strict liability. 
D) could not be liable if Larson & Son still exists as a corporate entity. 
A) cannot be held liable, because it is a corporation. 
B) cannot be held liable, because it did not manufacture the welder in question. 
C) might be held liable in some states under strict liability. 
D) could not be liable if Larson & Son still exists as a corporate entity.

Question 3

Under the Revised Act,Bentry Corporation's transfer of some of its assets to its wholly owned subsidiary is considered a sale in the regular course of business.

Accepted Answer

A) True 
 B)False

Question 4

The statutory provisions governing dissolution and liquidation usually prescribe procedures to safeguard the interests of the corporation's creditors.These procedures include:

Accepted Answer

A) the required mailing of notice to known creditors. 
B) a general publication of notice. 
C) the preservation of claims against the corporation. 
D) All of the above. 
A) the required mailing of notice to known creditors. 
B) a general publication of notice. 
C) the preservation of claims against the corporation. 
D) All of the above.

Question 5

Match each statement with the correct term below.
-domestic corporation

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 6

A purchaser of all the assets normally does not assume the liabilities of that company.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is untrue about fundamental changes of corporations?

Accepted Answer

A) Fundamental changes include charter amendments, mergers, consolidations, and dissolution. 
B) Fundamental changes of corporations are authorized by state incorporation statutes. 
C) Shareholder approval for fundamental changes usually needs to be unanimous. 
D) The 1999 revisions to the RMBCA contained substantial revisions to the RMBCA's treatment of fundamental changes. 
A) Fundamental changes include charter amendments, mergers, consolidations, and dissolution. 
B) Fundamental changes of corporations are authorized by state incorporation statutes. 
C) Shareholder approval for fundamental changes usually needs to be unanimous. 
D) The 1999 revisions to the RMBCA contained substantial revisions to the RMBCA's treatment of fundamental changes.

Question 8

Match each statement with the correct term below.
-articles of incorporation

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 9

Match each statement with the correct term below.
-bylaws

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 10

A consolidation:

Accepted Answer

A) has precisely the same result as a merger. 
B) is the most typical form of business combination used today. 
C) is always illegal (in contrast to mergers, which are legal under some state laws). 
D) requires the assent of both corporations' board of directors and shareholders. 
A) has precisely the same result as a merger. 
B) is the most typical form of business combination used today. 
C) is always illegal (in contrast to mergers, which are legal under some state laws). 
D) requires the assent of both corporations' board of directors and shareholders.

Question 11

Match each statement with the correct term below.
-corporation de jure

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 12

The concept of a combination that makes a publicly held corporation a private one and includes cash-out contributions and management buyouts is a:

Accepted Answer

A) going private transaction. 
B) procedure. 
C) merger. 
D) None of the above. 
A) going private transaction. 
B) procedure. 
C) merger. 
D) None of the above.

Question 13

In which of the following situations may a nonjudicial dissolution of a corporation occur?

Accepted Answer

A) By shareholders of a close corporation who elect in the articles of incorporation to have the power to dissolve the corporation. 
B) By expiration of the time period provided in the articles of incorporation. 
C) By voluntary action on the part of all of the holders of outstanding stock. 
D) A nonjudicial dissolution may occur in all of the above ways. 
E) A corporation may only be dissolved by judicial action. 
A) By shareholders of a close corporation who elect in the articles of incorporation to have the power to dissolve the corporation. 
B) By expiration of the time period provided in the articles of incorporation. 
C) By voluntary action on the part of all of the holders of outstanding stock. 
D) A nonjudicial dissolution may occur in all of the above ways. 
E) A corporation may only be dissolved by judicial action.

Question 14

If Sean,a shareholder who dissents to a corporate action,is entitled to appraisal remedies,they will be the:

Accepted Answer

A) fair value of his shares as of the day the corporation agrees to purchase the shares. 
B) fair value of the shares immediately before the action to which he objects is taken. 
C) average purchase price for the shares during the preceding 30 days. 
D) par value of the shares as set forth in the articles of incorporation.. 
A) fair value of his shares as of the day the corporation agrees to purchase the shares. 
B) fair value of the shares immediately before the action to which he objects is taken. 
C) average purchase price for the shares during the preceding 30 days. 
D) par value of the shares as set forth in the articles of incorporation..

Question 15

Match each statement with the correct term below.
-public corporation

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 16

Match each statement with the correct term below.
-ultra vires acts

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 17

Match each statement with the correct term below.
-indenture

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 18

The management of Corporation A forms Corporation B.Corporation B issues bonds to institutional investors to raise cash,with which it purchases the assets or stock of Corporation A.The assets of Corporation A are used as security for the bonds issued by Corporation B.This action by management is best described as a:

Accepted Answer

A) leveraged buyout. 
B) cash-out combination. 
C) short-form merger. 
D) compulsory share exchange. 
A) leveraged buyout. 
B) cash-out combination. 
C) short-form merger. 
D) compulsory share exchange.

Question 19

Match each statement with the correct term below.
-foreign corporation

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Question 20

Match each statement with the correct term below.
-subscriber

Accepted Answer

A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares. 
A) Debt agreement specifying loan terms. 
B) One created under the laws of a given state. 
C) One created under the laws of any other state or jurisdiction. 
D) Person who takes the preliminary steps to organize a corporation. 
E) Person who signs the articles of incorporation.
F)Rules governing a corporation's internal management.
G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
I)One whose shares are owned by a large number of people and are widely traded.
J)One created to administer a unit of local civil government.
K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
M)A type of debt security.
N)Person who agrees to purchase stock in a corporation.
O)Condition the payment of interest to some extent on corporate earnings.
P)Bonds subject to redemption.
Q)Eligible corporation electing to be taxed as a partnership.
R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
S)May be exchanged for other securities.
T)Claims against a corporation's general assets and also a lien on specific property.
U)Basic organizational document of a corporation; charter.
V)Shares reacquired by a corporation.
W)Opportunity to purchase a pro rata share of new stock offerings.
X)Source of capital creating an ownership interest in the corporation.
Y)A corporation's exercise of the right to repurchase its own shares.

Exam 36: Fundamental Changes of Corporations

If Able Corporation purchases all of the stock of Beta Corporation rather than all of its assets,there is now a change in Beta Corporation's legal status.

Under the Revised Act,Bentry Corporation's transfer of some of its assets to its wholly owned subsidiary is considered a sale in the regular course of business.

The statutory provisions governing dissolution and liquidation usually prescribe procedures to safeguard the interests of the corporation's creditors.These procedures include:

Match each statement with the correct term below. -domestic corporation

A purchaser of all the assets normally does not assume the liabilities of that company.

Which of the following is untrue about fundamental changes of corporations?

Match each statement with the correct term below. -articles of incorporation

Match each statement with the correct term below. -bylaws

A consolidation:

Match each statement with the correct term below. -corporation de jure

The concept of a combination that makes a publicly held corporation a private one and includes cash-out contributions and management buyouts is a:

In which of the following situations may a nonjudicial dissolution of a corporation occur?

If Sean,a shareholder who dissents to a corporate action,is entitled to appraisal remedies,they will be the:

Match each statement with the correct term below. -public corporation

Match each statement with the correct term below. -ultra vires acts

Match each statement with the correct term below. -indenture

Match each statement with the correct term below. -foreign corporation

Match each statement with the correct term below. -subscriber

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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