ch 21 bus law

What documents spell out the powers of a corporation? Choose 2 answers. the bylaws de facto documentation certificate of corporate power the charter (also called the articles of incorporation)

the bylaws the charter (also called the articles of incorporation)

The first step in terminating a corporation is: paying all debts and outstanding taxes. the board of directors adopting a resolution to dissolve the corporation. the officers winding up business. closing all bank accounts.

the board of directors adopting a resolution to dissolve the corporation.

Which of the following provisions are typically in a charter for a corporation? Choose 2 answers. the advertising plan for the corporation the name and address of the corporation's agent the trade secrets of the corporation the intended business purpose of the corporation

the name and address of the corporation's agent the intended business purpose of the corporation

Which of the following are rights of common shareholders? Choose 3 answers. priority for having debts paid from the liquidating company's assets transferable ownership opportunity to inspect corporate books and records voting on matters such as election of directors and proposals for mergers or liquidation

transferable ownership opportunity to inspect corporate books and records voting on matters such as election of directors and proposals for mergers or liquidation

Which class of stockholders typically takes the greatest risk, but also has the greatest chance of financial gains? bonds common stock mutual funds preferred stock

common stock

Along with a claim on assets, shareholders may also receive a portion of profits the company pays out in the form of a: reinvestment. capital gain. proxy. dividend.

dividend.

Which of the following should be approved by shareholders? Select 2 answers. A dissolution of the corporation A change in employee compensation An acquisition of the company by another company A sale of old computers that the company no longer uses

A dissolution of the corporation An acquisition of the company by another company

Oil Co. was a controlling shareholder of Pogo, a company that drilled for oil and gas in the Gulf of Mexico. When some additional leases became available, Oil Co. purchased all of them for itself. How could Oil Co. avoid liability? By first offering the leases to Pogo's board of directors. By first offering the leases to Pogo's other shareholders. By proving that Pogo could not afford to pay for the additional leases.

By proving that Pogo could not afford to pay for the additional leases

Officers and directors owe which of the following duties to the corporation? Choose 2 answer choices. Duty of Compensation Duty of Care Duty of Good Decisions Duty of Loyalty

Duty of Care Duty of Loyalty

At the first meeting of corporate shareholders, what business is normally conducted? Select 2 answers. Voting on the business name The adoption of corporate bylaws The election of the board of directors The filing of the articles of incorporation

The adoption of corporate bylaws The election of the board of directors

The president of R. Hoe & Co., Inc., refused to call a special meeting of the shareholders even though 55 percent of them requested it. One purpose of the meeting was to reinstate the former president. Do shareholders have the right to make these two requests? Yes to both No to both The shareholders have the right to call a meeting but not to reinstate the president. The shareholders have the right to reinstate the president but not to call a meeting.

The shareholders have the right to call a meeting but not to reinstate the president.

If a manager violates the business judgment rule, which of the following answers will not protect him? The disinterested members of the board approved the transaction. The transaction was of minor importance to the company. The disinterested shareholders approved the transaction. The transaction was entirely fair to the corporation.

The transaction was of minor importance to the company

Where should Articles of Incorporation be filed? Articles of Incorporation are not filed. With the state With the federal government With the county recorder's office

With the state

Which of the following is a requirement for the initial formation of a corporation? Articles of Incorporation a minute book an initial stock offering a board of directors

Articles of Incorporation

A corporate stockholder is entitled to which of the following rights? Elect officers Receive annual dividends Approve dissolution Prevent corporate borrowing

Elect officers

A corporation that is formed in one state but does business in another state is referred to in the second state as: a distant corporation. a foreign corporation. a domestic corporation. an alien corporation.

a foreign corporation.

The Board of Directors may conduct business: (Choose 2 answer choices) at special meetings. privately and outside of meetings called by the corporation. at regular meetings. at any time.

at special meetings. at regular meetings.

Which of the following is a duty of both corporate directors and corporate officers? limiting political endorsements to only candidates that the corporation supports making a full disclosure of potential conflicts of interest working at least forty hours per week for the corporation purchasing stock in the company

making a full disclosure of potential conflicts of interest

Common shareholders have the right to vote on: price of stock. proposals for fundamental changes affecting the company such as mergers or liquidation. when to pay dividends. compensation for the officers.

proposals for fundamental changes affecting the company such as mergers or liquidation.

The duty of care: is not a requirement of the business judgment rule. protects directors who make an uninformed decision if it was entirely fair to the company. protects a decision that has a rational business purpose, even if the activity was illegal. will not protect directors who make a decision that harms the company.

protects directors who make an uninformed decision if it was entirely fair to the company.

Generally, a corporation's articles of incorporation must include all of the following except the: name of the corporation's registered agent. name of each incorporator. number of authorized shares. quorum requirements.

quorum requirements.

The board of directors manages: shareholder proxies. the business and affairs of the corporation. the day-to-day activities of a corporation. employees' daily tasks.

the business and affairs of the corporation.

To meet the standard for the duty of care, a person must: act in good faith and without a mistake. act in good faith and with the judgment of a highly skilled person. act in good faith and with the judgment of an ordinarily prudent person. be faithful to the corporation.

act in good faith and with the judgment of an ordinarily prudent person.

A shareholder has the right to inspect the corporate books, if done: to determine voting alliances. for any purpose. to provide a competitor with an advantage. in good faith and for a proper purpose.

in good faith and for a proper purpose.