Exam 39: A: Corporate Formation and Financing

Bonds represent the purchase of ownership in a business firm.

The primary document needed to incorporate a business is the articles of incorporation.

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

Common stock provides a proportionate interest in the corporation with regard to net assets.

In some states,the courts will treat a corporation as a legal corporation despite a defect in its formation.

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

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

Normally,corporate shareholders are personally liable for the obligations of the corporation.

The first step in the incorporation process is to select a state in which to operate.

A corporation is recognized as a "person."

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

Express powers of a corporation are found in its articles of incorporation.

The abbreviation "P.A." in the name "Painless Dental,P.A." means that this organization is

A corporation has perpetual existence regardless of what the articles of incorporation state.

Lita is a holder of preferred stock in Mighty Clean Detergents,Inc.Lita has priority over holders of Mighty common stock as to

Implied powers of a corporation are expressed in state statutes.

When a corporation earns profits,it must distribute them to shareholders.

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

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation.Lily and Moe are Kleen's officers.As with other corporations,the responsibility for the overall management of Kleen rests with

Dag and Elke are holders of common stock in Fragrances,Inc.(FI).Like other holders of common stock,they have a residual position in the overall financial structure of FI,because they