Question 1

Skyla and Terry want to form and do business as Unique Boutique Corporation. Most statutes governing the formation and use of corporations are guided by

Accepted Answer

A)   city or county corporate codes.
B)   the Entrepreneur's Corporate Handbook.
C)   the federal Administrative Procedure Act.
D)   the Revised Model Business Corporation Act. D

Question 2

Express powers of a corporation can be found in its articles of corporation.

Accepted Answer

A) True 
 B)False

Question 3

The law of the state of in?corporation may restrict the implied powers of a corporation.

Accepted Answer

A) True 
 B)False

Question 4

The capital structure of a corporation cannot be set forth in the articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 5

A shareholder in a professional corporation can avoid liability for his or her wrongful acts simply by incorporating.

Accepted Answer

A) True 
 B)False

Question 6

A business incorporated in one state has an automatic right to do business in any other state.

Accepted Answer

A) True 
 B)False

Question 7

Frida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form

Accepted Answer

A)   a C corporation.
B)   a close corporation.
C)   an S corporation.
D)   a private corporation.

Question 8

Corporate officers select the corporate directors.

Accepted Answer

A) True 
 B)False

Question 9

A corporation's internal management structure is described in its articles or bylaws.

Accepted Answer

A) True 
 B)False

Question 10

Stan incorporates his scientific products business as Tech Supply, Inc. This firm could have perpetual existence in

Accepted Answer

A)   a few states.
B)   all states.
C)   most states.
D)   no states. C

Question 11

A corporate bond normally has a designated maturity date.

Accepted Answer

A) True 
 B)False

Question 12

"Piercing the corporate veil" means revealing to shareholders the internal rules of corporate management.

Accepted Answer

A) True 
 B)False

Question 13

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily and Moe are Kleen's officers. As with other corporations, the responsibility for the overall management of Kleen rests with

Accepted Answer

A)   the board of directors.
B)   the officers.
C)   the owners.
D)   the shareholders.

Question 14

The law of the state of in?corporation may restrict the express powers of a corporation.

Accepted Answer

A) True 
 B)False  True

Question 15

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate.

Accepted Answer

A) True 
 B)False

Question 16

A promoter is not personally liable for a preincorporation contract.

Accepted Answer

A) True 
 B)False

Question 17

Agents and employees of Apples Corporation and Oranges Corporation are convicted of conspiring to violate a fed?eral law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Accepted Answer

Yes, the corporations can be held liable...

Question 18

Bernie and Chan want to form a corporation to market MP3 accessories. The first step in the incorporation procedure is to

Accepted Answer

A)   file the articles of incorporation.
B)   hold the first organizational meeting.
C)   obtain a corporate charter.
D)   select a state in which to incorporate.

Question 19

A firm named Scientific Discovery Corporation (SDC)  makes an attempt to incorporate for a purpose other than making a profit. SDC is

Accepted Answer

A)   a foreign corporation.
B)   an alien corporation.
C)   a nonprofit corporation.
D)   not a corporation.

Question 20

Dan is a promoter for the soon-to-be-incorporated firm of E-Business, Inc. Dan signs a contract with Smith & Jones, Accountants, to render their services before E-Business is incorporated and for one year after the in?corporation. E-Business is incorporated. Three months later, after Smith & Jones has continued performing under the contract, the E-Business board of directors tells the accountants that it is canceling their con?tract. Smith & Jones files a suit against Dan and E-Business, alleging breach of contract. Will Smith & Jones prevail?

Accepted Answer

Yes. Smith & Jones will succeed in its s...

Exam 38: Corporationsformation and Financing

Skyla and Terry want to form and do business as Unique Boutique Corporation. Most statutes governing the formation and use of corporations are guided by

Correct Answer
verified
D

Express powers of a corporation can be found in its articles of corporation.

Correct Answer
verified

The law of the state of in?corporation may restrict the implied powers of a corporation.

Correct Answer
verified

The capital structure of a corporation cannot be set forth in the articles of incorporation.

Correct Answer
verified

A shareholder in a professional corporation can avoid liability for his or her wrongful acts simply by incorporating.

Correct Answer
verified

A business incorporated in one state has an automatic right to do business in any other state.

Correct Answer
verified

Frida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form

Correct Answer
verified

Corporate officers select the corporate directors.

Correct Answer
verified

A corporation's internal management structure is described in its articles or bylaws.

Correct Answer
verified

Stan incorporates his scientific products business as Tech Supply, Inc. This firm could have perpetual existence in

Correct Answer
verified
C

A corporate bond normally has a designated maturity date.

Correct Answer
verified

"Piercing the corporate veil" means revealing to shareholders the internal rules of corporate management.

Correct Answer
verified

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily and Moe are Kleen's officers. As with other corporations, the responsibility for the overall management of Kleen rests with

Correct Answer
verified

The law of the state of in?corporation may restrict the express powers of a corporation.

Correct Answer
verified
True

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate.

Correct Answer
verified

A promoter is not personally liable for a preincorporation contract.

Correct Answer
verified

Agents and employees of Apples Corporation and Oranges Corporation are convicted of conspiring to violate a fed?eral law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Correct Answer
verified
Yes, the corporations can be held liable...
View Answer

Bernie and Chan want to form a corporation to market MP3 accessories. The first step in the incorporation procedure is to

Correct Answer
verified

A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate for a purpose other than making a profit. SDC is

Correct Answer
verified

Correct Answer
verified
Yes. Smith & Jones will succeed in its s...
View Answer

Exam 38: Corporationsformation and Financing

Skyla and Terry want to form and do business as Unique Boutique Corporation. Most statutes governing the formation and use of corporations are guided by

Correct AnswerverifiedD

Express powers of a corporation can be found in its articles of corporation.

Correct AnswerverifiedShow Answer

The law of the state of in?corporation may restrict the implied powers of a corporation.

Correct AnswerverifiedShow Answer

The capital structure of a corporation cannot be set forth in the articles of incorporation.

Correct AnswerverifiedShow Answer

A shareholder in a professional corporation can avoid liability for his or her wrongful acts simply by incorporating.

Correct AnswerverifiedShow Answer

A business incorporated in one state has an automatic right to do business in any other state.

Correct AnswerverifiedShow Answer

Frida and Gregor want to market a new line of fishing gear. To avoid income taxes at the corporate level, they should form

Correct AnswerverifiedShow Answer

Corporate officers select the corporate directors.

Correct AnswerverifiedShow Answer

A corporation's internal management structure is described in its articles or bylaws.

Correct AnswerverifiedShow Answer

Stan incorporates his scientific products business as Tech Supply, Inc. This firm could have perpetual existence in

Correct AnswerverifiedC

A corporate bond normally has a designated maturity date.

Correct AnswerverifiedShow Answer

"Piercing the corporate veil" means revealing to shareholders the internal rules of corporate management.

Correct AnswerverifiedShow Answer

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily and Moe are Kleen's officers. As with other corporations, the responsibility for the overall management of Kleen rests with

Correct AnswerverifiedShow Answer

The law of the state of in?corporation may restrict the express powers of a corporation.

Correct AnswerverifiedTrue

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate.

Correct AnswerverifiedShow Answer

A promoter is not personally liable for a preincorporation contract.

Correct AnswerverifiedShow Answer

Agents and employees of Apples Corporation and Oranges Corporation are convicted of conspiring to violate a fed?eral law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so, how can they be punished?

Correct AnswerverifiedYes, the corporations can be held liable...View AnswerShow Answer

Bernie and Chan want to form a corporation to market MP3 accessories. The first step in the incorporation procedure is to

Correct AnswerverifiedShow Answer

A firm named Scientific Discovery Corporation (SDC) makes an attempt to incorporate for a purpose other than making a profit. SDC is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedYes. Smith & Jones will succeed in its s...View AnswerShow Answer

Correct Answer
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D

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Yes, the corporations can be held liable...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Yes. Smith & Jones will succeed in its s...
View Answer