Question 1

Corporate Properties,Inc.,attempts to acquire a substantial number of the shares of Downtown Investment Corporation through a public offer to Downtown's shareholders.This is

Accepted Answer

A) a consolidation. 
B) a tender offer. 
C) ashort-form merger. 
D) a termination.

Question 2

Lyla is a common shareholder in Norman's Nutty Nuts Corporation.As a common shareholder,Lyla is

Accepted Answer

A) guaranteed regular payments of dividends. 
B) not guaranteed any payments of dividends. 
C) not given any voting rights. 
D) liable for all of Norman's Nutty Nuts's debts.

Question 3

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

Accepted Answer

A) the board of directors. 
B) the officers. 
C) the owners. 
D) the shareholders.

Question 4

A corporation whose shares are held by relatively few persons is a close corporation.

Accepted Answer

A) True 
 B)False

Question 5

Appraisal rights normally extend to regular mergers and consolidations.

Accepted Answer

A) True 
 B)False

Question 6

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

Accepted Answer

A) file a plan of merger with the secretary of state. 
B) file an article of merger with Pepper. 
C) make a tender offer to the shareholders of Pepper. 
D) make a tender offer to the shareholders of Salt.

Question 7

A partnership cannot be a shareholder in an S corporation.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) corporations. 
B) estates. 
C) individuals. 
D) partnerships.

Question 9

Realty Credit Company and Second Mortgage Corporation plan to con-solidate.Most likely,the articles of consolidation will be filed with

Accepted Answer

A) the county recording office. 
B) the Securities and Exchange Commission. 
C) the state's secretary of state. 
D) the U.S.Department of Justice.

Question 10

Eye Appliance Company and Fresh Views,Inc.,wish to combine all of their assets,stock,and personnel into a new firm to be called Goggles Corporation.This is

Accepted Answer

A) a consolidation. 
B) a merger. 
C) an exchange of assets. 
D) a takeover.

Question 11

Finn and Glenda want to form and do business as Hobby Crafts Corporation.A corporation is

Accepted Answer

A) a natural person. 
B) a tangible thing. 
C) an artificial legal person. 
D) a visible radiance.

Question 12

Wings2Go Corporation fails to hold an organizational meeting.In this circumstance,at common law Wings2Go is most likely

Accepted Answer

A) a corporation by estoppel. 
B) a de facto corporation. 
C) a de jure corporation. 
D) ultra vires.

Exam 24: Corporate Formation, financing, and Termination

Corporate Properties,Inc.,attempts to acquire a substantial number of the shares of Downtown Investment Corporation through a public offer to Downtown's shareholders.This is

Lyla is a common shareholder in Norman's Nutty Nuts Corporation.As a common shareholder,Lyla is

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

A corporation whose shares are held by relatively few persons is a close corporation.

Appraisal rights normally extend to regular mergers and consolidations.

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

A partnership cannot be a shareholder in an S corporation.

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

Realty Credit Company and Second Mortgage Corporation plan to con-solidate.Most likely,the articles of consolidation will be filed with

Eye Appliance Company and Fresh Views,Inc.,wish to combine all of their assets,stock,and personnel into a new firm to be called Goggles Corporation.This is

Finn and Glenda want to form and do business as Hobby Crafts Corporation.A corporation is

Wings2Go Corporation fails to hold an organizational meeting.In this circumstance,at common law Wings2Go is most likely