Exam 36: Corporate Formation and Financing

Corporations are not allowed to enter into contracts in their own name.

Which of the following is true of a C Corporation?

Incorporators cannot become shareholders of the corporation they are associated with.

According to the RMBCA, only corporations with 50 or fewer shareholders may elect statutory close corporation status.

The WaterGlove Corporation issues ________ preferred stock that requires payment of a quarterly dividend of $5.00 per share. The WaterGlove Corporation falls behind with four quarterly payments, i.e., $20.00 per share of preferred stock. The next quarter, the corporation makes a profit of $25.00 per share. The corporation must pay $20.00 per share of arrearages to the preferred shareholders plus this quarter's payment of $5.00 per share.

A long-term debt security that is secured by some form of collateral is referred to as a ________.

Which of the following is true for a corporation's liability on the promoters' contracts if the corporation is never formed?

Which of the following must be true for a corporation to elect statutory close corporation status?

The earnings of a not-for-profit corporation are distributed among its members.

Common stockholders receive dividends declared by the board of directors.

Which of the following must be included in the articles of incorporation?

A foreign corporation can conduct commerce in a state if it obtains a certificate of authority from the state.

In debt securities, the corporation is the debtor and the holder is the creditor.

What is an indenture agreement?

________ are powers beyond express powers that allow a corporation to accomplish its corporate purpose.

An S corporation can have nonresident aliens as shareholders.

Dissolution of a corporation that has begun business or issued shares upon recommendation of the board of directors and a majority vote of the shares entitled to vote is known as ________.

Which of the following is true of corporate bylaws?

Issued shares that have been repurchased by the corporation are referred to as ________.

A contract between a corporation and a holder that contains the terms of a debt security is known as a(n) ________.