Question 1

MegaCorp is incorporated in the state of Delaware and is registered only in Delaware.Jolene purchased a MegaCorp product from a company's sales representative following a presentation in Michigan.Jolene was seriously injured by the product in Michigan.Under the Model Act,if Jolene sues in Michigan,can MegaCorp defend the suit there?

Accepted Answer

A)   MegaCorp may only defend against a lawsuit in Michigan if it first registers by paying back fees,taxes,and penalties.
B)   Yes,MegaCorp can bring or defend against a lawsuit in any state regardless of whether the corporation is registered to business in that state.
C)   Yes,MegaCorp can defend against a lawsuit in Michigan regardless of whether MegaCorp is registered to do business in that state.
D)   No.Jolene must sue and MegaCorp may defend a lawsuit only in Delaware.

Question 2

Why do so many corporations incorporate in Delaware?

Accepted Answer

A)   Delaware has laws that favor Management.
B)   Delaware has an efficient court system with courts that on serve businesses.
C)   It have a lot of precedent making the outcome of litigation more predictable.
D)   All of these answers are true.

Question 3

Terminating a corporation is a three-step process: dissolution,winding up,and termination.

Accepted Answer

A) True 
 B)False

Question 4

Sara decided to incorporate her business under the name Gomo,Inc.Before Gomo was incorporated,Sara signed a contract in the name of Gomo,Inc.to lease a store front.Sara did not tell the other party that Gomo was not yet formed.Sara is personally liable on the lease.

Accepted Answer

A) True 
 B)False

Question 5

What are some of the advantages for a business to incorporate in Delaware?

Accepted Answer

Delaware offers corporations several adv...

Exam 22: Life and Death of a Corporation

Sara decided to incorporate her business under the name Gomo,Inc.Before Gomo was incorporated,Sara signed a contract in the name of Gomo,Inc.to lease a store front.Sara did not tell the other party that Gomo was not yet formed.Sara is personally liable on the lease.

Correct Answer
verified

Why do so many corporations incorporate in Delaware?

Correct Answer
verified

What are some of the advantages for a business to incorporate in Delaware?

Correct Answer
verified
Delaware offers corporations several adv...
View Answer

Terminating a corporation is a three-step process: dissolution,winding up,and termination.

Correct Answer
verified

Correct Answer
verified

Exam 22: Life and Death of a Corporation

Sara decided to incorporate her business under the name Gomo,Inc.Before Gomo was incorporated,Sara signed a contract in the name of Gomo,Inc.to lease a store front.Sara did not tell the other party that Gomo was not yet formed.Sara is personally liable on the lease.

Correct AnswerverifiedShow Answer

Why do so many corporations incorporate in Delaware?

Correct AnswerverifiedShow Answer

What are some of the advantages for a business to incorporate in Delaware?

Correct AnswerverifiedDelaware offers corporations several adv...View AnswerShow Answer

Terminating a corporation is a three-step process: dissolution,winding up,and termination.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Delaware offers corporations several adv...
View Answer

Correct Answer
verified

Correct Answer
verified