Business Law Ch 36

Which of the following is true for a corporation's incorporation in a state? A. Domestic corporations can incorporate into only one state. B. Domestic corporations can incorporate into all states that it conducts business in. C. Alien corporations can only incorporate into one state. D. Foreign corporations can incorporate into more than one state.

A. Domestic corporations can incorporate into only one state.

Which of the following has a fixed maturity date? A. bonds B. common stock C. cumulative preferred stock D. participating preferred stock

A. bonds

Which of the following can dismiss the existence of a corporation? A. voluntary termination by shareholder B. death of a shareholder C. bankruptcy of a shareholder D. voluntary termination by the corporation's creditors

A. voluntary termination by shareholder

A corporation in the United States that has been incorporated in another country is referred to as a(n) _________ corporation.

Alien

A corporation that is incorporated in another country is known as a(n) _________.

Alien corporation

A(n) _________ is the basic governing documents of a corporation which must be filed with the secretary of state of the state of incorporation.

Articles of incorporation

Which of the following must necessarily be met for a corporation to elect as a statutory close corporation? A. The corporation must have 100 or more shareholders. B. The corporation must have 50 or fewer shareholders. C. The corporation must contain a board of directors. D. The corporation must have a set of bylaws.

B. The corporation must have 50 or fewer shareholders.

Which of the following must be included in an article of incorporation? A. The minutes of the first organizational meeting of the board of directors. B. The number of shares the corporation is authorized to issue. C. The dissolution terms of the incorporation. D. The corporate seal must be used in the articles of incorporation.

B. The number of shares the corporation is authorized to issue.

Which of the following acts is seen as conclusive proof for the existence of a corporation? A. creation of the promoter's contracts B. filing of the articles of incorporation C. acquiring the domain name for the corporation D. selecting a state for incorporation

B. filing of the articles of incorporation

A panel of persons who are elected by the shareholders that make policy decisions concerning the operation of a corporation is known as _________

Board of directors

Which of the following is a definition of a foreign corporation? A. A corporation with incorporations in multiple states. B. A corporation in the state in which it is incorporated. C. A corporation in states other than the one in which it is incorporated. D. A corporation in the United States which has been incorporated in another country.

C. A corporation in states other than the one in which it

Which of the following shares have the right to vote? A. unissued shares B. treasury shares C. outstanding shares D. liquidated shares

C. outstanding shares

Which of the following elects members of the board of directors for a corporation? A. the CEO B. corporate officers C. shareholders D. employees

C. shareholders

A(n) _________ is a fictitious legal entity that is created according to statutory requirements.

Corporation

Which of the following is true of corporate bylaws? A. They only contain rules on how the corporation can deal with the government. B. They are only adopted by the shareholders of the corporation. C. They are not binding on the directors, or shareholders of the corporation. D. They do not have to be filed with any government official.

D. They do not have to be filed with any government official.

A corporation is a(n) _________ corporation in the state in which it is incorporated.

Domestic

A corporation in the state in which it was formed is referred to as a(n) _________.

Domestic corporation

T or F Bylaws of a corporation must be filed with a government official.

False

T or F Corporations are not allowed to enter into contracts in their own name.

False

T or F Publicly held corporations are corporations run by the government.

False

T or F Shareholders are liable for the debt and obligations of a corporation.

False

T or F Shareholders of a closely held corporation play a minor role in its management.

False

A(n) _________ is a clause that can be included in the articles of incorporation that permits the corporation to engage in any activity permitted by law.

General-purpose clause

The person or persons, partnerships, or corporations that are responsible for incorporation of a corporation is known as a(n) _________.

Incorporator

_________ is a general rule of corporate law that provides that generally shareholders are liable only to the extent of their capital contributions for the debts and obligations of their corporation and are not personally liable for the debts and obligations of the corporation.

Limited liability of shareholders

A(n) _________ is a clause that can be included in the articles of incorporation that stipulates the activities that the corporation can engage in. The corporation can engage in no other purposes or activities.

Limited-purpose clause

A(n) _________ is a person or persons who organize and start a corporation, negotiate and enter into contracts in advance of its formation, find the initial investors to finance the corporation, and so forth.

Promoter

_________ are corporations that have many shareholders and whose securities are often traded on national stock exchanges

Publicly held corporations

A person or corporation that is empowered to accept service of process on behalf of a corporation is referred to as a(n) _________

Registered agent

Owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation are known as _________

Shareholders

T or F A corporation is a foreign corporation in states other than the one in which it is incorporated.

True

T or F A corporation is dissolved upon the effective date of the articles of dissolution

True

T or F A foreign corporation can conduct intrastate commerce if it obtains a certificate of authority from the state.

True

T or F According to the RMBCA, only corporations with 50 or fewer shareholders may elect statutory close corporation status.

True

T or F Amendments to the articles of incorporation must be filed with the secretary of state of the state of incorporation.

True

T or F Corporation codes regulate the formation, operation, and dissolution of corporations.

True

T or F Secured bondholders can foreclose on the collateral in the event of nonpayment of interest

True

T or F The RMBCA provides that corporate existence begins when the articles of incorporation are filed.

True

T or F The articles of incorporation must contain the name and address of every incorporator.

True

T or F The board of directors makes policy decisions concerning the operation of a corporation

True