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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