Ch 32 Busi Law

A corporate director "owns" the corporation.

False

A corporation is not liable for the misconduct of its agents, officers, or employees.

False

An alien corporation is a corporation formed by a local corporation's competitor.

False

Ida and Jay are the shareholders and the directors of Keystone Property Management Inc. Lily and Mike are Keystone officers. The responsibility for the overall management of this firm rests with

Ida and Jay, as the directors.

A foreign corporation normally does not need a certificate of authority to sell goods or services via the Internet.

True

A publicly held corporation is any corporation whose shares are publicly traded in a securities market.

True

Express powers of a corporation can be found in state corporation statutes, as well as other documents.

True

Selecting the state in which to incorporate is an important step in the incorporation procedure.

True

The board of directors makes corporate policy decisions.

True

The corporation is a creature of statute.

True

Flo and Glen form Health Food Inc. to coordinate the purchase, sale, and delivery of food products from organic farms to hospitals and other institutions. The stated purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is

a benefit corporation.

Integrated Devices, Inc., is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Integrated is

a close corporation.​

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

a de facto corporation.

A firm named Biometric Research makes an attempt to incorporate for a purpose other than making a profit. Biometric is

a nonprofit corporation.

Rob owns Solar Panels Corporation. He uses Solarl's funds to pay his personal expenses, creates Thermal Power Inc. to engage in the same business as Solar, transfers Solar's assets to Thermal, and petitions Solar into bankruptcy. This most likely warrants

a pierce of the corporate veil.

Pro Audio, Inc., would like to change its corporate status to that of an S corporation. To qualify, Pro Audio must​

be a domestic corporation.

Burgers & Brews, Inc., files its articles of incorporation with the appropriate government agency. Not likely to appear in the articles is the name of

each shareholder

Allen wants Wilderness Outfitters to join with him to form and do business as Canyon River Rafting Corporation. A corporation can be owned by

other businesses or natural persons.

Sierra is a holder of preferred stock in Rio Grande Irrigation, Inc. Sierra has priority over holders of Rio common stock as to

payments of dividends.

Jen and Kay would like to form Lunch Garden, Inc., to enter the food vending business. Most likely, the articles of incorporation for the firm will notinclude

the minutes of the first organizational meeting.