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Which of the following is an INCORRECT statement regarding incorporation​ procedure?

A corporation can be in incorporated in more than one state.

Which of the following statements about voluntary dissolution is NOT​ true?

A corporation cannot be voluntarily dissolved.

Which of the following is an INCORRECT statement regarding Delaware corporation​ law?

A corporation must do business in Delaware in order to obtain the benefits of Delaware corporation law.

Which of the following is an INCORRECT statement regarding corporate​ management?

A corporation usually has a decentralized management.

Which of the following is an INCORRECT statement regarding common​ stock?

Common stock has a fixed maturity date.

​_____ are the most dominant form of business organization in the United​ States, generating more than 85 percent of the​ country's gross business receipts.

Corporations

Which of the following is an INCORRECT statement regarding the corporation as a legal​ person?

Corporations are not separate legal persons.

Which of the following is an INCORRECT statement regarding the duration of a​ corporation's existence?

Corporations automatically expire twenty​ (20) years after the secretary of​ state's issuance of a certificate of incorporation unless the owners of the corporation expressly petition the secretary of state for a renewal of the corporate charter.

Which of the following is an INCORRECT statement regarding​ promoters' liability and the​ corporation's liability on​ promoters' contracts?

If the corporation never comes into​ existence, the promoters have no liability on the contract.

​_____ stock is a type of equity security that is given certain preferences and rights over common stock.

Preferred

Which of the following is an INCORRECT statement regarding preferred​ stock?

Preferred stockholders have unlimited liability for corporate debts and other obligations.

Which of the following is NOT a criterion a corporation must meet in order to be taxed as an S​ corporation?

The corporation must have no more than​ 1,000 shareholders.

Which of the following is an INCORRECT statement regarding the registered office​ and/or registered agent of a​ corporation?

The registered office must be the same as the​ corporation's place of business.

The articles of incorporation are also referred to as the corporate​ _____.

charter

Cumulative preferred stock provides that any missed dividend payment must be paid in the future to the preferred shareholders before the​ _____________ can receive any dividends. The amount of unpaid cumulative dividends is called​ ________________.

common​ shareholders; dividend arrearages

The Ford Motor​ Company, a major manufacturer of automobiles and other​ vehicles, is incorporated in Delaware. It is​ a(n) _____ corporation in Delaware.

domestic

A dividend preference is the right to receive​ a(n) _____ dividend at set periods during the year.

fixed

The Ford Motor​ Company, a major manufacturer of automobiles and other​ vehicles, is incorporated in Delaware. It distributes vehicles in​ Delaware, as well as the other 49 states. The Ford Motor Company is​ a(n) _____ corporation in the other 49 states.

foreign

​A(n) _____ is a person who organizes and starts a​ corporation, negotiates and enters into contracts in advance of its​ formation, and finds the initial investors to finance the corporation.

promotor

Common stock is a type of equity security that represents the​ _____ value of a corporation.

residual

Which of the following is NOT a possible preference held by preferred​ stockholders?

right to authorize new shares

Which of the following is NOT a characteristic of a​ corporation?

same identity as​ owner(s)

Owners of corporations are called​ _____.

shareholders

According to the​ RMBCA, the articles of incorporation must include which of the​ following?

the name and address of each incorporator

According to the​ RMBCA, the articles of incorporation must include all EXCEPT which of the​ following?

the period of duration of the corporation

An act by a corporation that is beyond its express or implied powers is called​ a(n) _____ act.

ultra vires

Which of the following is an INCORRECT statement regarding corporate​ shareholders?

​Generally, shareholders have unlimited liability for corporate debts.

Which of the following is an INCORRECT statement regarding corporate​ bylaws?

​Incorporators, not the initial​ directors, can adopt the bylaws of the corporation.

A bond is a​ _____________ security that is​ _________________.

​long-term, debt; secured by some form of collateral

A debenture is a​ _____________ debt instrument that is​ _________________.

​long-term, unsecured; based on a​ corporation's general credit standing

A note is a​ _________ ​ _____________ security with a maturity of 5 years or less. Notes can be​ _____________.

​short-term, debt; either secured or unsecured