Exam 38: Corporationsformation and Financing

Lita is a holder of preferred stock in Mit-E Detergents, Inc. Lita has priority over holders of Mit-E common stock as to

Discount Factory Outlets, Inc., issues bonds. Bonds

A state constitution may restrict a corporation's implied powers.

Jim and Kiley are architects and members of J&K, P.C., a profes?sional corporation. Jim supervises Luc, an employee of the firm. As a member, Jim

An association that is not technically a corporation can never be treated as if it were a corporation.

The shares of Capital Corporation are publicly traded in securities mar?kets. Capital Corporation is

Quik Company claims to be a corporation but it is not. Pam signs a con?tract with Quik that is not performed. In Pam's suit against Quik, a court will likely recognize the firm as

Ruby Red Corporation has six shareholders, four of whom are members of the same family. All of Ruby's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants

Incredible E-Sales Corporation is a new Internet business. How can Incredible E-Sales obtain capi?tal to finance its operations?

Dependable Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufactur?ing and distributing a newly pat?ented kitchen appliance, (2) is owned by five share?holders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Dependable is

Superior Home Products, Inc., is a corporation. Superior's implied powers are necessary to

Convenience Mart, Inc., is a close corporation. Convenience Mart is

The "minimum contacts" rule determines in which state a corporation should be chartered.

A shareholder in a professional corporation can be liable for malpractice arising from the rendering of professional services.

A shareholder is prohibited from lending funds to his or her corporation.

To qualify as a professional corporation, Medical Clinic, P.C.,

Generally, there is a uniform body of national corporate law.

Eager Beaver Corporation fails to hold its organizational meeting to adopt bylaws. Under this circumstance, Eager Beaver is most likely

Starr Cardio, Inc., is a small business. Ted, Uma, and eleven other members of the Starr family own all of its stock. Currently, Starr's income is taxed at the corporate level and, after being distributed to the family members, at the shareholder level. Can Starr retain its corporate status but oth?er?wise avoid this double taxation? If so, how?

Caffeine Café, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of