Chapter 36 Warmup Business Law

C. C

​A(n) _____ corporation is a corporation that does not qualify to or does not elect to be federally taxed as an S corporation. A. V B. T C. C Your answer is correct.D. G E. L

E. Delaware

_____ has the most advanced corporation law in the United States. A. Texas B. Maryland C. New York D. Rhode Island E. Delaware

D. registered agent

If someone is suing a​ corporation, the complaint and summons is typically served on the​ corporation's _____. A. chief operations officer B. chief executive officer C. secretary of state D. registered agent Your answer is correct.E. chief financial officer

C. to make excessive contributions to a political campaign

Which of the following is NOT a corporate​ power? A. to​ purchase, own,​ lease, sell,​ mortgage, or otherwise deal in real and personal property B. to issue notes and bonds and other obligations C. to make excessive contributions to a political campaign Your answer is correct.D. to make contracts E. to lend​ money, borrow​ money, and incur liabilities

E. The corporation must have begun its business operations as either a sole proprietorship or a general partnership.

Which of the following is NOT a requirement for a corporation to qualify as an S​ corporation? A. Shareholders must be​ individuals, estates, or certain trusts. B. The corporation cannot be a member of an affiliated group of corporations. C. The corporation must be a domestic corporation. D. The corporation can have no more than 100 shareholders. E. The corporation must have begun its business operations as either a sole proprietorship or a general partnership.

A. local ordinances

Which of the following is NOT a source of a​ corporation's express​ powers? A. local ordinances Your answer is correct.B. state constitutions C. articles of incorporation D. the U.S. Constitution E. federal statutes and state statutes

C. In a voluntary​ dissolution, the liquidation is usually carried out by the secretary of state.

Which of the following is NOT true about a corporate​ dissolution? A. A dissolved corporation continues its corporate existence but may not carry on any business except as required to wind up and liquidate its business and affairs. B. In a voluntary​ dissolution, the liquidation is usually carried out by the board of directors. C. In a voluntary​ dissolution, the liquidation is usually carried out by the secretary of state. Your answer is correct.D. Termination occurs only after the winding up of the​ corporation's affairs, the liquidation of its​ assets, and the distribution of the proceeds to the claimants. E. The dissolution of a corporation does not impair any rights or remedies available against the corporation or its​ directors, officers, or shareholders for any right or claim existing or incurred prior to dissolution.

E. The secretary of state can obtain administrative dissolution of a corporation if the corporation has been sued.

Which of the following is NOT true about administrative​ dissolution? A. The secretary of state can obtain administrative dissolution of a corporation if it failed for 60 days after a change of its registered agent to file a statement of such change with the secretary of state. B. The secretary of state can obtain administrative dissolution of a corporation if it failed to file an annual report. C. The secretary of state can obtain administrative dissolution of a corporation if it did not pay its franchise fee. D. The secretary of state can obtain administrative dissolution of a corporation if it failed for 60 days to maintain a registered agent in the state. E. The secretary of state can obtain administrative dissolution of a corporation if the corporation has been sued.

B. They can be owned by the government.

Which of the following is NOT true about the ownership of​ for-profit corporations? A. They can be owned by professionals. B. They can be owned by the government. Your answer is correct.C. They can be owned by a small group of family members. D. They can sell their shares on an organized securities market. E. They can be owned by one person.

D. They are prohibited from making a profit.

Which of the following is NOT true about​ non-for-profit corporations? A. They can be formed for religious purposes. B. They can be formed for educational purposes. C. Although​ not-for-profit corporations may make a​ profit, they are prohibited by law from distributing this profit to their​ members, directors, or officers. D. They are prohibited from making a profit. Your answer is correct.E. They can be formed for charitable purposes.

C. The RMBCA encourages the concept of par value.

Which of the following is an INCORRECT statement regarding common​ stock? A. Common stockholders have the right to elect corporate directors. B. Common stock has no preferences. C. The RMBCA encourages the concept of par value. Your answer is correct.D. Common stock does not have a fixed maturity date. E. Common stock is an equity security that represents the residual value of a corporation.

B. Preferred stock is an equity security that represents the residual value of a corporation.

Which of the following is an INCORRECT statement regarding preferred​ stock? A. Preferred stock can be issued in classes or series. B. Preferred stock is an equity security that represents the residual value of a corporation. Your answer is correct.C. Preferences of preferred stock must be set forth in the articles of incorporation. D. Preferred stockholders generally do not have the right to vote for the election of directors. E. Preferred stockholders have limited liability.

C. A corporation can be incorporated in more than one state.

Which of the following is an INCORRECT statement regarding selecting a state for​ incorporation? A. Large corporations generally opt to incorporate in the state with the laws that are most favorable to the​ corporation's internal operations. B. Small corporations tend to incorporate in the state in which the corporation will be doing most of its business. C. A corporation can be incorporated in more than one state. Your answer is correct.D. Most corporations choose to incorporate in the state in which the corporation will be doing most of its business. E. Delaware is a state that is very favorable to a​ corporation's internal operations.

A. A corporation has the same identity as its shareholders.

Which of the following is an INCORRECT statement regarding the corporation as a legal​ person? A. A corporation has the same identity as its shareholders. Your answer is correct.B. A corporation can be found criminally liable for violations of law. C. A corporation can enter into contracts. D. A corporation can sue in its own name. E. A corporation can hold title to property.

C. ​Today, most corporations are formed pursuant to general corporation laws of the federal government.

Which of the following is an INCORRECT statement regarding​ corporations? A. Corporations generate more than 85 percent of the​ country's gross business receipts. B. Corporations range in size from one owner to thousands of owners. C. ​Today, most corporations are formed pursuant to general corporation laws of the federal government. Your answer is correct.D. Owners of corporations are called shareholders. E. Corporations are the most dominant form of business organization in the United States.

C. the right to receive​ $600 each year as a dividend on the preferred stock.

A stockholder purchases​ $10,000 of a preferred stock that pays a 6 percent dividend annually. The stockholder has​ ________. A. the right to receive​ $600 each month as a dividend on the preferred stock B. no right to a dividend unless the corporation is liquidated C. the right to receive​ $600 each year as a dividend on the preferred stock. Your answer is correct.D. no right to a dividend unless the stock is redeemable E. no right to a dividend unless the stock is converted to common stock

C. chancery

Delaware has a special courtlong dashthe court of ​_____long dashthat hears and decides business cases. A. entrepreneurship B. merchants C. chancery Your answer is correct.D. business claims E. commerce