Exam 32: Corporate Formation and Financing

A court will pierce the corporate veil of a corporation that is formed to evade an existing legal obligation.

In corporate law,acts of a corporation that are beyond its express or implied powers are de facto or de jure acts.

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

The corporation is a creature of the common law.

A publicly held corporation is any corporation whose shares are publicly traded in a securities market.

Boutique Bodega Corporation would like to change its corporate status to that of an S corporation to avoid income taxes at the corporate level.To qualify,the shareholders must not be

The state can suspend the entity's corporate status until the taxes are paid or even dissolve the corporation for failing to pay taxes.

There are no important consequences if the procedures for incorporation are not followed precisely.

The alter-ego theory is applied when a corporation is so dominated and controlled by an individual or group that the separate identities of the person (or the group)and the corporation are no longer distinct.

Qiara is a holder of preferred stock in Rio Grande Irrigation & Development,Inc.Qiara has priority over holders of Rio common stock as to

One of the key advantages of the corporate form is the unlimited liability of its owners.

The articles of incorporation serve as a primary source of authority for the corporation's future organization and business functions.

Like the bylaws of other corporations,the bylaws of Equipment Leasing,Inc.,

The shares of Home Mortgage Corporation are publicly traded in securities markets.Home Mortgage Corporation is

Agents and employees of Deco Arts Corporation and Echo Imitations,Inc.,are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine.Can the corporations be held liable for these crimes If so,how can they be punished

Deepwater Dredging & Excavation holds itself out to others as being a corporation but makes no attempt to incorporate.Estuary Marina signs a contract with Deepwater that is not performed.Estuary Marina files a suit against the firm.The court will likely hold that Deepwater is

Neci and Olwen want to form and do business as a corporation-Pastries & Pies,Inc.A corporation is a legal entity created and recognized by

The registered agent is the person who receives legal punishment (such as fines and imprisonment)on behalf of the corporation.

Equestrian Stables Corporation's articles list an incorrect address for its incorporator.Under this circumstance,Equestrian Stables is most likely

Preferred stock is included among the liabilities of a business because it is equity.