Question 1

A court will not pierce the corporate veil of a corporation simply because it is too thinly capitalized.​

Accepted Answer

A) True 
 B)False

Question 2

Corporate officers can normally be removed by the board of directors without cause.​

Accepted Answer

A) True 
 B)False

Question 3

Directors can delegate work to corporate officers and employees.​

Accepted Answer

A) True 
 B)False

Question 4

As a general rule, shareholders are responsible for the daily management of a corporation.​

Accepted Answer

A) True 
 B)False

Question 5

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of​

Accepted Answer

A)   ​none of the choices.
B)   ​the business judgment rule.
C)   ​the duty of care.
D)   ​the duty of loyalty.

Question 6

Tech Talent, Inc., is a corporation. Techno Talent's implied powers enable it to​

Accepted Answer

A)   ​none of the choices.
B)   ​depart significantly from traditional corporate formalities.
C)   ​bind the corporation to an action that will greatly affect its purpose.
D)   ​borrow funds and lend funds.

Question 7

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.​

Accepted Answer

A) True 
 B)False

Question 8

The articles of incorporation can exclude or limit shareholders' voting rights.​

Accepted Answer

A) True 
 B)False

Question 9

In most states, an individual can be an officer or a director of a corporation, but not both at the same time.​

Accepted Answer

A) True 
 B)False

Question 10

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.​

Accepted Answer

A) True 
 B)False

Question 11

For shareholders to act during a shareholders' meeting, a quorum must be present.​

Accepted Answer

A) True 
 B)False

Question 12

Avery wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Avery would normally take into account all of the following except​

Accepted Answer

A)   ​the liability of the owners.
B)   ​the forms of competitors' business organizations.
C)   ​tax considerations.
D)   ​the need for capital.

Question 13

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 14

Ida and Jay are the directors of Keystone Property Management Inc. Lily and Mike are Keystone officers. Nina is a Keystone shareholder. The responsibility for the overall management of this firm rests with​

Accepted Answer

A)   Ida and Jay.​
B)   ​Lily and Mike.
C)   ​Nina.
D)   ​none of the parties.

Question 15

Corporate officers are selected and removed by shareholders.​

Accepted Answer

A) True 
 B)False

Question 16

Daryl, Elsa, and Ferris are the directors of Go Apps, Inc. Go also has four officers and fourteen shareholders. Dividends can be ordered by the firm's​

Accepted Answer

A)   ​board.
B)   ​minority shareholders.
C)   ​officers.
D)   ​majority shareholders.

Question 17

Ann is a corporate officer for Blooming Flora, Inc. As a corporate officer, Ann is​

Accepted Answer

A)   ​the head of the board of directors.
B)   ​an employee of the firm.
C)   ​the employer of the firm.
D)   ​in charge of approving the shareholders.

Question 18

Jen and Kay would like to form Lunch Garden, Inc., to enter the food vending business. Most likely, the articles of incorporation for the firm will not include​

Accepted Answer

A)   ​the corporate name.
B)   ​the name and address of a registered agent.
C)   ​the number of shares that the corporation is authorized to issue.
D)   ​the minutes of the first organizational meeting.

Question 19

Bea transfers shares of stock that she owns in Coin Laundry Corporation to Dick. A shareholders' meeting takes place before his ownership is entered in the firm's stock book. A vote at the meeting can be cast by​

Accepted Answer

A)   ​Bea and Dick.
B)   ​Bea.
C)   ​Dick.
D)   ​none of the choices.

Question 20

Like the bylaws of other corporations, the bylaws of Rocks, Paper & Scissors, Inc.,​

Accepted Answer

A)   ​establish the operating name of the corporation.
B)   ​establish the value and classes of corporate stock.
C)   ​were adopted at its first organizational meeting.
D)   ​were submitted for approval to the public official in charge.

Exam 19: Corporations

Ida and Jay are the directors of Keystone Property Management Inc. Lily and Mike are Keystone officers. Nina is a Keystone shareholder. The responsibility for the overall management of this firm rests with​

Correct AnswerverifiedShow Answer

A court will not pierce the corporate veil of a corporation simply because it is too thinly capitalized.​

Correct AnswerverifiedShow Answer

Like the bylaws of other corporations, the bylaws of Rocks, Paper & Scissors, Inc.,​

Correct AnswerverifiedShow Answer

The articles of incorporation can exclude or limit shareholders' voting rights.​

Correct AnswerverifiedShow Answer

Corporate officers can normally be removed by the board of directors without cause.​

Correct AnswerverifiedShow Answer

Directors can delegate work to corporate officers and employees.​

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

Jen and Kay would like to form Lunch Garden, Inc., to enter the food vending business. Most likely, the articles of incorporation for the firm will not include​

Correct AnswerverifiedShow Answer

Avery wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Avery would normally take into account all of the following except​

Correct AnswerverifiedShow Answer

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.​

Correct AnswerverifiedShow Answer

For shareholders to act during a shareholders' meeting, a quorum must be present.​

Correct AnswerverifiedShow Answer

Bea transfers shares of stock that she owns in Coin Laundry Corporation to Dick. A shareholders' meeting takes place before his ownership is entered in the firm's stock book. A vote at the meeting can be cast by​

Correct AnswerverifiedShow Answer

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.​

Correct AnswerverifiedShow Answer

Ann is a corporate officer for Blooming Flora, Inc. As a corporate officer, Ann is​

Correct AnswerverifiedShow Answer

Tech Talent, Inc., is a corporation. Techno Talent's implied powers enable it to​

Correct AnswerverifiedShow Answer

Daryl, Elsa, and Ferris are the directors of Go Apps, Inc. Go also has four officers and fourteen shareholders. Dividends can be ordered by the firm's​

Correct AnswerverifiedShow Answer

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of​

Correct AnswerverifiedShow Answer

Corporate officers are selected and removed by shareholders.​

Correct AnswerverifiedShow Answer

In most states, an individual can be an officer or a director of a corporation, but not both at the same time.​

Correct AnswerverifiedShow Answer

As a general rule, shareholders are responsible for the daily management of a corporation.​

Correct AnswerverifiedShow Answer

Ida and Jay are the directors of Keystone Property Management Inc. Lily and Mike are Keystone officers. Nina is a Keystone shareholder. The responsibility for the overall management of this firm rests with

Correct Answer
verified

A court will not pierce the corporate veil of a corporation simply because it is too thinly capitalized.

Correct Answer
verified

Like the bylaws of other corporations, the bylaws of Rocks, Paper & Scissors, Inc.,

Correct Answer
verified

The articles of incorporation can exclude or limit shareholders' voting rights.

Correct Answer
verified

Corporate officers can normally be removed by the board of directors without cause.

Correct Answer
verified

Directors can delegate work to corporate officers and employees.

Correct Answer
verified

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

Correct Answer
verified
Generally, to obtain capital, a corporat...
View Answer

Jen and Kay would like to form Lunch Garden, Inc., to enter the food vending business. Most likely, the articles of incorporation for the firm will not include

Correct Answer
verified

Avery wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Avery would normally take into account all of the following except

Correct Answer
verified

When deciding which form of business organization to choose, businesspersons normally take into account tax considerations.

Correct Answer
verified

For shareholders to act during a shareholders' meeting, a quorum must be present.

Correct Answer
verified

Bea transfers shares of stock that she owns in Coin Laundry Corporation to Dick. A shareholders' meeting takes place before his ownership is entered in the firm's stock book. A vote at the meeting can be cast by

Correct Answer
verified

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

Correct Answer
verified

Ann is a corporate officer for Blooming Flora, Inc. As a corporate officer, Ann is

Correct Answer
verified

Tech Talent, Inc., is a corporation. Techno Talent's implied powers enable it to

Correct Answer
verified

Daryl, Elsa, and Ferris are the directors of Go Apps, Inc. Go also has four officers and fourteen shareholders. Dividends can be ordered by the firm's

Correct Answer
verified

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of

Correct Answer
verified

Corporate officers are selected and removed by shareholders.

Correct Answer
verified

In most states, an individual can be an officer or a director of a corporation, but not both at the same time.

Correct Answer
verified

As a general rule, shareholders are responsible for the daily management of a corporation.

Correct Answer
verified