Question 1

Which of the following may be issued to shareholders as proof of ownership in the corporation?

Accepted Answer

A)   Stock subscriptions
B)   Stock acknowledgements
C)   Paper documentation
D)   Stock certificates
E)   Acknowledgement documentsF) A) and B)
G) C) and E)

Question 2

Private persons create _______________ corporations for private purposes.

Accepted Answer

A)   Public
B)   Private
C)   True
D)   Domestic
E)   Publicly heldF) All of the above
G) A) and E)

Question 3

How much must a shareholder who signs a stock subscription pay for no-par shares?

Accepted Answer

A)   The depreciated value
B)   At least the value on the last sale
C)   The value as set by the board of directors
D)   The value as voted upon by shareholders
E)   The fair market valueF) None of the above
G) C) and D)

Question 4

Which of the following references the liability of corporations for torts and crimes committed by their agents during the scope of their employment?

Accepted Answer

A)   Stare decisis
B)   Res ipsa loquitur
C)   Respondeat superior
D)   Absoluta respond
E)   None of theseF) A) and C)
G) None of the above

Question 5

Death of a corporation occurs in which of the following phases?

Accepted Answer

A)   Dissolution and trial
B)   Dissolution and proceedings
C)   Dissolution and liquidation
D)   Reforming and liquidation
E)   Notification and liquidationF) A) and C)
G) D) and E)

Question 6

A common corporate practice in Japan is for multiple corporations, banks, and companies to form hierarchical conglomerates known as _______________.

Accepted Answer

A)   Balmas
B)   Coriseus
C)   Keiretsus
D)   Doresus
E)   BenyetsF) C) and D)
G) D) and E)

Question 7

Courts have refused to find that corporations have rights under the U.S. Constitution.

Accepted Answer

A) True 
 B)False

Question 8

If a corporation has fewer than ________________ shareholders, the Revised Model Business Corporation Act allows companies to eliminate the board of directors entirely.

Accepted Answer

A)   100
B)   50
C)   30
D)   25
E)   None of these because the Revised Model Business Corporation does not allow companies to eliminate the board of directors entirely.F) B) and D)
G) A) and E)

Question 9

Which of the following is generally used to determine the value of stock when a dissenting shareholder exercises an appraisal right when a proposed merger is involved?

Accepted Answer

A)   The value of shares on the day after the shareholder vote.
B)   The value of shares on the day before the shareholder vote.
C)   The value of shares on the day of the shareholder vote.
D)   The value of shares 10 days before the shareholder vote.
E)   The value of shares on the day the proposed merger was announced.F) None of the above
G) B) and D)

Question 10

How are directors chosen during incorporation?

Accepted Answer

A)   Either the incorporators appoint them or the corporate articles name them.
B)   Either the incorporators appoint them or by a majority vote of the shareholders.
C)   Only by the incorporators appointing them.
D)   Only by the corporate articles naming them.
E)   Only by the president appointing them.F) C) and D)
G) A) and D)

Question 11

In which of the following does an aggressor pay cash to target shareholders?

Accepted Answer

A)   Hostile tender offer
B)   Cash tender offer
C)   Immediate tender offer
D)   Substantial tender offer
E)   Asset tender offerF) C) and D)
G) B) and E)

Question 12

Reference - Skateboard Growth. Both Bernie and John were presidents of small businesses manufacturing and selling skateboards. Bernie's store was called "Skateboard City" and John's business was called "Skateboard for Health." Because a large sports store was coming into town, they, along with the boards of directors decided that it would be a good idea to combine the businesses. They decided to retain the name "Skateboard for Health" and simply amend the articles of consolidation. Bernie was concerned, however, with the change because he was contemplating filing a lawsuit against Hank who had purchased 10 custom skateboards and had not paid for them. He was excited, however, about the prospect of not being liable for a lawsuit he expects to be filed by Greg who fell when a wheel came off on a skateboard sold by Bernie's corporation resulting in a serious ankle sprain and medical bills. After investigation, Bernie is aware that the wheel was negligently attached to the skateboard. Bernie told John that one reason he wanted to retain John's name was to prevent Greg from being able to recover against him. Which of the following is true in most states regarding Bernie's concern that the surviving company might not be able to sue Hank for the price of the skateboards?

Accepted Answer

A)   The surviving company will not be able to sue Hank.
B)   The surviving company will be able to sue Hank only if Hank purchased the skateboards within 30 days of the joinder of the businesses.
C)   The surviving company will be able to sue Hank only if Hank approves in writing the joinder of the businesses.
D)   The surviving company will be able to sue Hank only if Hank is notified by certified letter of the joinder of the businesses.
E)   The surviving company will retain the right to sue Hank.F) None of the above
G) A) and B)

Question 13

Discuss the rights of corporations under the Bill of Rights.

Accepted Answer

Courts consider corporations to be "lega...

Question 14

Although most states allow for longer terms, for how long do directors typically serve?

Accepted Answer

A)   Three years
B)   Two years
C)   One year
D)   Four years
E)   Five yearsF) D) and E)
G) A) and B)

Question 15

Which of the following was the result on appeal in Campbell, Kessser, and Williams v. Pothas Corporation, the case in the text in which the defendant alleged that golden parachute agreements were not enforceable because they violated public policy?

Accepted Answer

A)   That based on significant case law ruling such agreements in violation of public policy, the agreements would be declared void under principles of stare decisis.
B)   That based on a Congressional committee report, the contracts would be declared void.
C)   That the defendant did not receive its benefit in regard to the contracts and that the golden parachute agreements were, therefore, voidable by the defendant.
D)   That the agreements were valid and did not violate public policy.
E)   That the agreements were valid but only because a merger was involved.F) C) and D)
G) A) and E)

Question 16

Which of the following are directors who are also officers or employees of the corporation?

Accepted Answer

A)   Approved directors
B)   Outside directors
C)   Inside directors
D)   Affiliated directors
E)   Unaffiliated directorsF) B) and D)
G) A) and E)

Question 17

Which of the following is generally false regarding the surviving entity in a merger situation?

Accepted Answer

A)   The surviving entity remains a single corporation.
B)   The shareholders of the surviving entity must amend its articles of incorporation according to the specific conditions of the merger.
C)   The surviving entity does not become liable for debts of the absorbed corporation.
D)   The surviving entity obtains the absorbed corporation's assets.
E)   The surviving entity obtains the absorbed corporation's rights, powers, and privileges.F) A) and E)
G) None of the above

Question 18

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Accepted Answer

A)   Acknowledged
B)   Complex
C)   Simple
D)   Preferred
E)   CommonF) A) and B)
G) B) and D)

Question 19

Corporate _______________ are rules and regulations that govern the corporation's internal management.

Accepted Answer

A)   Bylaws
B)   Requirements
C)   Statutes
D)   Authorizations
E)   ProhibitionsF) A) and C)
G) A) and B)

Question 20

In a merger situation, which of the following is a term for the remaining corporation?

Accepted Answer

A)   The resulting corporation
B)   The winning corporation
C)   The approved corporation
D)   The surviving corporation
E)   The remaining corporationF) A) and B)
G) C) and D)

Exam 22: Corporations: Formation and Organization

Discuss the rights of corporations under the Bill of Rights.

Correct Answer
verified
Courts consider corporations to be "lega...
View Answer

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Correct Answer
verified

Which of the following is generally false regarding the surviving entity in a merger situation?

Correct Answer
verified

How are directors chosen during incorporation?

Correct Answer
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Which of the following is generally used to determine the value of stock when a dissenting shareholder exercises an appraisal right when a proposed merger is involved?

Correct Answer
verified

Which of the following was the result on appeal in Campbell, Kessser, and Williams v. Pothas Corporation, the case in the text in which the defendant alleged that golden parachute agreements were not enforceable because they violated public policy?

Correct Answer
verified

Which of the following are directors who are also officers or employees of the corporation?

Correct Answer
verified

Private persons create _______________ corporations for private purposes.

Correct Answer
verified

Correct Answer
verified

How much must a shareholder who signs a stock subscription pay for no-par shares?

Correct Answer
verified

If a corporation has fewer than ________________ shareholders, the Revised Model Business Corporation Act allows companies to eliminate the board of directors entirely.

Correct Answer
verified

Death of a corporation occurs in which of the following phases?

Correct Answer
verified

Corporate _______________ are rules and regulations that govern the corporation's internal management.

Correct Answer
verified

In which of the following does an aggressor pay cash to target shareholders?

Correct Answer
verified

A common corporate practice in Japan is for multiple corporations, banks, and companies to form hierarchical conglomerates known as _______________.

Correct Answer
verified

Which of the following may be issued to shareholders as proof of ownership in the corporation?

Correct Answer
verified

Courts have refused to find that corporations have rights under the U.S. Constitution.

Correct Answer
verified

Which of the following references the liability of corporations for torts and crimes committed by their agents during the scope of their employment?

Correct Answer
verified

In a merger situation, which of the following is a term for the remaining corporation?

Correct Answer
verified

Although most states allow for longer terms, for how long do directors typically serve?

Correct Answer
verified

Exam 22: Corporations: Formation and Organization

Discuss the rights of corporations under the Bill of Rights.

Correct AnswerverifiedCourts consider corporations to be "lega...View AnswerShow Answer

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Correct AnswerverifiedShow Answer

Which of the following is generally false regarding the surviving entity in a merger situation?

Correct AnswerverifiedShow Answer

How are directors chosen during incorporation?

Correct AnswerverifiedShow Answer

Which of the following is generally used to determine the value of stock when a dissenting shareholder exercises an appraisal right when a proposed merger is involved?

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in Campbell, Kessser, and Williams v. Pothas Corporation, the case in the text in which the defendant alleged that golden parachute agreements were not enforceable because they violated public policy?

Correct AnswerverifiedShow Answer

Which of the following are directors who are also officers or employees of the corporation?

Correct AnswerverifiedShow Answer

Private persons create _______________ corporations for private purposes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How much must a shareholder who signs a stock subscription pay for no-par shares?

Correct AnswerverifiedShow Answer

If a corporation has fewer than ________________ shareholders, the Revised Model Business Corporation Act allows companies to eliminate the board of directors entirely.

Correct AnswerverifiedShow Answer

Death of a corporation occurs in which of the following phases?

Correct AnswerverifiedShow Answer

Corporate _______________ are rules and regulations that govern the corporation's internal management.

Correct AnswerverifiedShow Answer

In which of the following does an aggressor pay cash to target shareholders?

Correct AnswerverifiedShow Answer

A common corporate practice in Japan is for multiple corporations, banks, and companies to form hierarchical conglomerates known as _______________.

Correct AnswerverifiedShow Answer

Which of the following may be issued to shareholders as proof of ownership in the corporation?

Correct AnswerverifiedShow Answer

Courts have refused to find that corporations have rights under the U.S. Constitution.

Correct AnswerverifiedShow Answer

Which of the following references the liability of corporations for torts and crimes committed by their agents during the scope of their employment?

Correct AnswerverifiedShow Answer

In a merger situation, which of the following is a term for the remaining corporation?

Correct AnswerverifiedShow Answer

Although most states allow for longer terms, for how long do directors typically serve?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Courts consider corporations to be "lega...
View Answer

Correct Answer
verified

Correct Answer
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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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