Exam 38: Corporationsformation and Financing

A shareholder is not an "owner" of a corporation.

Every corporation must identify a specific person as an agent to receive legal documents on behalf of a corporation.

An incorporator must have an interest in a corporation to file its articles of incorporation.

A close corporation may restrict the right of a shareholder to transfer stock by means of a shareholder agreement.

A corporation cannot be formed without a profit-making purpose.

Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants

Corporations are entitled to freedom of speech.

Any change in shareholders affects the continued existence of a corporation.

Financial Innovations, Inc., issues bonds, which are also known as

Suki is a registered agent for Transport Trucking, Inc. (TTI), which incorporated in Utah. As a registered agent, Suki

A public corporation is also known as a publicly held corporation.

Digitech is a foreign corporation, which means that Digitech

Promoters, not incorporators, must execute the articles of incorporation.

Unlike a principal and agent, a corporation is never liable for a tort of its officer.

Any person who buys common stock acquires voting rights in a corporation.

Any power expressly set out in the bylaws of a corporation is ultra vires.

Corporate bylaws must be approved by the appropriate state official before the corporation's first organizational meeting.

Express powers of a corporation can be found in the law of the state of incorporation.

A corporation has perpetual existence in most states unless stated other?wise in the ar?ti?cles of incorporation.

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is a legal entity created and recognized by