Question 1

When a conflict arises among the documents that involve Fast Flights Corporation,the first priority for resolving the conflict is given to

Accepted Answer

A)  resolutions of the board of directors.
B)  Fast Flights's bylaws.
C)  state statues.
D)  the U.S.Constitution.

Question 2

A state constitution may resolve a conflict among documents involving a corporation.

Accepted Answer

A) True 
 B)False

Question 3

A corporation whose shares are all held by a single person is called a close corporation.

Accepted Answer

A) True 
 B)False

Question 4

Sangfroid Business Corporation can be compelled to dissolve by

Accepted Answer

A)  its creditors only.
B)  itself,through its shareholders and directors,only.
C)  itself,through its shareholders and directors,or the state.
D)  the state only.

Question 5

Realty Credit Company and Second Mortgage Corporation plan to con?solidate.Most likely,the articles of consolidation will be filed with

Accepted Answer

A)  the county recording office.
B)  the Securities and Exchange Commission.
C)  the state's secretary of state.
D)  the U.S.Department of Justice.

Question 6

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 7

DVD Rental Corporation would like to change its corporate status to that of an S corporation to avoid in?come taxes at the corporate level.To qualify,DVD Rental Corporation must

Accepted Answer

A)  be located in the United States.
B)  have more than one hundred shareholders.
C)  be a non-profit corporation.
D)  have more than one class of stock.

Question 8

Wiley incorporates his business as Wiley Wire Corporation in Texas.He and his group of shareholders intend to make a profit from their sales of fencing wire.Wiley Wire Corporation is

Accepted Answer

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

Question 9

Selecting the state in which to incorporate is an important step in the incorporation procedure.

Accepted Answer

A) True 
 B)False

Question 10

Ruff Games,Inc.,wishes to ac?quire a controlling interest in Smart Toy Com?pany by buying its stock.Smart Toy is

Accepted Answer

A)  an alien corporation.
B)  an acquiring corporation.
C)  a receiver.
D)  a target corporation.

Question 11

A corporation has an implied power to extend credit to those with whom it has a legal or contractual relationship.

Accepted Answer

A) True 
 B)False

Question 12

O.K.Oil holds itself out to others as being a corporation but makes no attempt to incorporate.In this circumstance,O.K.is most likely

Accepted Answer

A)  a corporation by estoppel.
B)  a de facto corporation.
C)  a de jure corporation.
D)  ultra vires.

Question 13

Eager Beaver Corporation fails to hold an organizational meeting.In this circumstance,Eager Beaver is most likely

Accepted Answer

A)  a corporation by estoppel.
B)  a de facto corporation.
C)  a de jure corporation.
D)  ultra vires.

Question 14

Like the bylaws of other corporations,the bylaws of Retail Sales,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.

Question 15

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.

Question 16

The certificate of incorporation describes the internal rules of management for a corporation.

Accepted Answer

A) True 
 B)False

Question 17

A sale of all of a corporation's assets requires the approval of its shareholders.

Accepted Answer

A) True 
 B)False

Question 18

Because of the ultra vires doctrine,shareholders are told the internal rules of corporate management.

Accepted Answer

A) True 
 B)False

Question 19

Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.Mall Stores combines with Niche Retail,but only Mall Stores continues to exist.This transaction was

Accepted Answer

A)  a consolidation.
B)  a tender offer.
C)  a short-form merger.
D)  a termination.

Question 20

Superior Home Products,Inc.,is a corporation.Superior's implied powers enable it to

Accepted Answer

A)  amend the articles of incorporation.
B)  bring a derivative suit.
C)  declare dividends.
D)  borrow funds,extend credit,and make charitable contributions.

Exam 30: Formation and Termination of a Corporation

Selecting the state in which to incorporate is an important step in the incorporation procedure.

Correct AnswerverifiedShow Answer

A corporation has an implied power to extend credit to those with whom it has a legal or contractual relationship.

Correct AnswerverifiedShow Answer

Superior Home Products,Inc.,is a corporation.Superior's implied powers enable it to

Correct AnswerverifiedShow Answer

When a conflict arises among the documents that involve Fast Flights Corporation,the first priority for resolving the conflict is given to

Correct AnswerverifiedShow Answer

Sangfroid Business Corporation can be compelled to dissolve by

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

DVD Rental Corporation would like to change its corporate status to that of an S corporation to avoid in?come taxes at the corporate level.To qualify,DVD Rental Corporation must

Correct AnswerverifiedShow Answer

Because of the ultra vires doctrine,shareholders are told the internal rules of corporate management.

Correct AnswerverifiedShow Answer

A state constitution may resolve a conflict among documents involving a corporation.

Correct AnswerverifiedShow Answer

Eager Beaver Corporation fails to hold an organizational meeting.In this circumstance,Eager Beaver is most likely

Correct AnswerverifiedShow Answer

A sale of all of a corporation's assets requires the approval of its shareholders.

Correct AnswerverifiedShow Answer

O.K.Oil holds itself out to others as being a corporation but makes no attempt to incorporate.In this circumstance,O.K.is most likely

Correct AnswerverifiedShow Answer

Like the bylaws of other corporations,the bylaws of Retail Sales,Inc.,

Correct AnswerverifiedShow Answer

Wiley incorporates his business as Wiley Wire Corporation in Texas.He and his group of shareholders intend to make a profit from their sales of fencing wire.Wiley Wire Corporation is

Correct AnswerverifiedShow Answer

A corporation whose shares are all held by a single person is called a close corporation.

Correct AnswerverifiedShow Answer

Ruff Games,Inc.,wishes to ac?quire a controlling interest in Smart Toy Com?pany by buying its stock.Smart Toy is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The certificate of incorporation describes the internal rules of management for a corporation.

Correct AnswerverifiedShow Answer

Realty Credit Company and Second Mortgage Corporation plan to con?solidate.Most likely,the articles of consolidation will be filed with

Correct AnswerverifiedShow Answer

Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.Mall Stores combines with Niche Retail,but only Mall Stores continues to exist.This transaction was

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified