FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

If a corporation has S corporation status, it can avoid the imposition of income taxes at the corporate level.

A) True
B) False

Correct Answer

verified

True

Question 2

True/False

Review LaterAdd Note

Review Later

As a general rule, shareholders make daily business decisions for a corporation.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

When the corporation is harmed by the actions of a third party, the directors can bring a lawsuit in the name of the corporation against that party.

Since stock is intangible personal property, the ownership right to stock exists independently of a stock certificate.

Brandi is a shareholder of Cloud Servers & Routers Inc.. Brandi will be deemed to have a fiduciary duty to Cloud and its minority shareholders if she has a sufficient number of shares to

A state court can dissolve a corporation for fraudulent conduct by its directors.

Guy is Hot Java Company's majority shareholder. Guy decides to sell his Hot Java stock. The sale will be an effective transfer of the control of the company. Does Guy owe a duty to Hot Java or its minority shareholders in this situation?

A firm named Biometric Research Corporation makes an attempt to incorporate for a purpose other than making a profit. Biometric is

A director or officer must exercise due care in performing their duties, including acting in good faith.

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

Venture capital is capital provided to new business ventures by professional, outside investors.

The ordinary rules of agency normally apply to the employment of corporate officers.

Sierra is a holder of preferred stock in Rio Grande Irrigation & Development Corporation. Sierra has priority over holders of Rio common stock as to

Smoke & Mirrors Inc. can be compelled to dissolve by

Nora is a director of Outback Outfitters, Inc. Under the standard of due care owed by directors of a corporation, Nora's decisions must be informed and

The incorporation of the town of Halfway, Oregon, is approved by the state. Halfway is

Stocks represent the borrowing of funds by firms.

Sports Data Stream Inc. is a start-up business. To obtain financing, the corporation makes use of a cooperative activity in which people network and pool funds and other resources via the Internet. This is

Deepwater Dredging Company holds itself out to others as being a corporation but makes no attempt to incorporate. Estuary Marina signs a contract with Deepwater and Deepwater fails to perform. Estuary Marina files a suit against the firm. The court will likely hold that Deepwater is

Every shareholder is entitled to examine specified corporate records but only in person, not through an agent.