Question 1

The shares of Home Mortgage Corporation are publicly traded in securities markets. Home Mortgage Corporation is

Accepted Answer

A)   ​a close corporation.
B)   ​a privately held corporation.
C)   ​a public corporation.
D)   ​a publicly held corporation.E) B) and C)
F) B) and D)

Question 2

In many states, close corporations have more flexibility in determining their rules of operation.

Accepted Answer

A) True 
 B)False

Question 3

Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Accepted Answer

A)   ​a natural being.
B)   ​a tangible thing.
C)   ​an artificial legal person.
D)   ​a non-entity.E) A) and B)
F) B) and C)

Question 4

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal 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 5

Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is

Accepted Answer

A)   ​a domestic corporation.
B)   ​a foreign corporation.
C)   ​an alien corporation.
D)   ​a non-entity.E) B) and C)
F) B) and D)

Question 6

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto acts.

Accepted Answer

A) True 
 B)False

Question 7

An agreement between shareholders can restrict the transfer of a close corporation's stock.

Accepted Answer

A) True 
 B)False

Question 8

The U.S. Postal Service is a public corporation.

Accepted Answer

A) True 
 B)False

Question 9

The corporation is a creature of statute.

Accepted Answer

A) True 
 B)False

Question 10

Ben incorporates his app business as Clickology, Inc. Under most state corporation statutes, Clickology can have

Accepted Answer

A)   ​only a finite, yet-to-be-determined existence.
B)   ​only a one-year, nonrenewable existence.
C)   ​only a one-year, renewable existence.
D)   ​perpetual existence.E) B) and C)
F) A) and D)

Question 11

An alien corporation is a corporation formed by a local corporation's competitor.

Accepted Answer

A) True 
 B)False

Question 12

In the absence of express constitutional, statutory, or other provisions, the corporation has no implied powers.

Accepted Answer

A) True 
 B)False

Question 13

A corporation whose shares are held by relatively few persons is a close corporation.

Accepted Answer

A) True 
 B)False

Question 14

PrimarySource.com Corporation is a new online, textbook, and school supply business. How can PrimarySource.com obtain capital to finance its operations?

Accepted Answer

Generally, to obtain capital, a corporat...

Question 15

A corporation is not liable for the misconduct of its agents, officers, or employees.

Accepted Answer

A) True 
 B)False

Question 16

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

Accepted Answer

A) True 
 B)False

Question 17

Express powers of a corporation can be found in state corporation statutes.

Accepted Answer

A) True 
 B)False

Question 18

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

Accepted Answer

A)   ​a natural person.
B)   ​a tangible thing.
C)   ​an artificial being.
D)   ​a visible contemplation.E) None of the above
F) C) and D)

Question 19

The true ownership of a corporation is represented by common stock.

Accepted Answer

A) True 
 B)False

Question 20

Preferred stock is an equity security with preferences.

Accepted Answer

A) True 
 B)False

Exam 5: Corporate Formation and Financing

An agreement between shareholders can restrict the transfer of a close corporation's stock.

Correct AnswerverifiedShow Answer

The U.S. Postal Service is a public corporation.

Correct AnswerverifiedShow Answer

A corporation is not liable for the misconduct of its agents, officers, or employees.

Correct AnswerverifiedShow Answer

Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Correct AnswerverifiedShow Answer

Preferred stock is an equity security with preferences.

Correct AnswerverifiedShow Answer

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

Correct AnswerverifiedShow Answer

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

Correct AnswerverifiedShow Answer

A corporation whose shares are held by relatively few persons is a close corporation.

Correct AnswerverifiedShow Answer

In the absence of express constitutional, statutory, or other provisions, the corporation has no implied powers.

Correct AnswerverifiedShow Answer

Express powers of a corporation can be found in state corporation statutes.

Correct AnswerverifiedShow Answer

Ben incorporates his app business as Clickology, Inc. Under most state corporation statutes, Clickology can have

Correct AnswerverifiedShow Answer

The shares of Home Mortgage Corporation are publicly traded in securities markets. Home Mortgage Corporation is

Correct AnswerverifiedShow Answer

An alien corporation is a corporation formed by a local corporation's competitor.

Correct AnswerverifiedShow Answer

The corporation is a creature of statute.

Correct AnswerverifiedShow Answer

The true ownership of a corporation is represented by common stock.

Correct AnswerverifiedShow Answer

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto acts.

Correct AnswerverifiedShow Answer

In many states, close corporations have more flexibility in determining their rules of operation.

Correct AnswerverifiedShow Answer

PrimarySource.com Corporation is a new online, textbook, and school supply business. How can PrimarySource.com obtain capital to finance its operations?

Correct AnswerverifiedGenerally, to obtain capital, a corporat...View AnswerShow Answer

Ruby Red Corporation is incorporated in South Carolina. In that state, Ruby Red is

Correct AnswerverifiedShow Answer

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal 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

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Generally, to obtain capital, a corporat...
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Yes, the corporations can be held liable...
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