Chapter 22

In U.S. law, ______ are legal entities.

corporations

state incorporation statutes

establish the requirements for corporate formation.

dividend

is a distribution of corporate profits or income to the shareholders.

A shareholder's liability for corporate actions is

limited to his or her corporate investment

The board of directors of a corporation selects ______ to manage the day-to-day business of the corporation.

officers

Because corporations are legal entities distinct from their ______, corporations are ______ for corporate actions.

shareholders; liable

The Fourth Amendment

to the U.S. Constitution protects corporations from unreasonable searches and seizures.

Each individual corporation's charter creates a contract between that corporation and the

state

Which of the following is an accurate statement about corporations and due process rights?

Corporations have due process rights under both the Fifth and the Fourteenth Amendments to the U.S. Constitution.

Which of the following is an accurate statement about corporate criminal liability?

Today, criminal prosecutions of corporations are much more common than they were in the past.

Which of the following is a true statement about whether corporations can sue and/or be sued by others?

Corporations can sue or be sued by others.