Question 1

Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, Wings2Go is most likely

Accepted Answer

A)   ​a corporation by estoppel.
B)   ​a de facto corporation.
C)   ​a de jure corporation.
D)   ​ultra vires.E) C) and D)
F) A) and B)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

​Sean is the incorporator of Twisty's Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty's are overseen by

Accepted Answer

A)   ​Velma.
B)   ​Ross.
C)   ​Sean.
D)   ​Phyllis.E) A) and D)
F) B) and C)

Question 4

Sierra is a holder of preferred stock in Rio Grande Irrigation, Inc. Sierra has priority over holders of Rio common stock as to

Accepted Answer

A)   ​nothing.
B)   ​payments of dividends.
C)   ​the date on which Rio must repurchase the shares.
D)   ​upward changes in the market price of the shares.E) A) and B)
F) C) and D)

Question 5

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 6

If a corporation has S corporation status, it must pay income taxes at the corporate level.

Accepted Answer

A) True 
 B)False

Question 7

Hollywood Lights, Inc. substantially complies with all conditions precedent to incorporation. Hollywood is most likely

Accepted Answer

A)   ​a corporation by estoppel.
B)   ​a de facto corporation.
C)   ​a de jure corporation.
D)   ​a benefit corporation.E) A) and D)
F) C) and D)

Question 8

To pierce the corporate veil means to reveal the identity of its true owner.

Accepted Answer

A) True 
 B)False

Question 9

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely

Accepted Answer

A)   ​a corporation by estoppel.
B)   ​a de facto corporation.
C)   ​a de jure corporation.
D)   ​a benefit corporation.E) All of the above
F) None of the above

Question 10

Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they

Accepted Answer

A)   ​are guaranteed to receive more than the amount of their investment.
B)   ​are the last to receive returns for their investment.
C)   ​have priority to the firm's assets if it becomes insolvent.
D)   ​reside in the state of the firm's incorporation.E) B) and C)
F) All of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Preferred stock is an equity security with preferences.

Accepted Answer

A) True 
 B)False

Exam 39: Corporate Formation and Financing

Sean is the incorporator of Twisty's Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty's are overseen by

Correct Answer
verified

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely

Correct Answer
verified

Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, Wings2Go is most likely

Correct Answer
verified

Sierra is a holder of preferred stock in Rio Grande Irrigation, Inc. Sierra has priority over holders of Rio common stock as to

Correct Answer
verified

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

Correct Answer
verified

Hollywood Lights, Inc. substantially complies with all conditions precedent to incorporation. Hollywood is most likely

Correct Answer
verified

If a corporation has S corporation status, it must pay income taxes at the corporate level.

Correct Answer
verified

To pierce the corporate veil means to reveal the identity of its true owner.

Correct Answer
verified

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

Correct Answer
verified

Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they

Correct Answer
verified

Preferred stock is an equity security with preferences.

Correct Answer
verified

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 Answer
verified
Yes, the corporations can be held liable...
View Answer

Exam 39: Corporate Formation and Financing

​Sean is the incorporator of Twisty's Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty's are overseen by

Correct AnswerverifiedShow Answer

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely

Correct AnswerverifiedShow Answer

Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, Wings2Go is most likely

Correct AnswerverifiedShow Answer

Sierra is a holder of preferred stock in Rio Grande Irrigation, Inc. Sierra has priority over holders of Rio common stock as to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Hollywood Lights, Inc. substantially complies with all conditions precedent to incorporation. Hollywood is most likely

Correct AnswerverifiedShow Answer

If a corporation has S corporation status, it must pay income taxes at the corporate level.

Correct AnswerverifiedShow Answer

To pierce the corporate veil means to reveal the identity of its true owner.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they

Correct AnswerverifiedShow Answer

Preferred stock is an equity security with preferences.

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

Sean is the incorporator of Twisty's Pretzels Corporation. Ross is a shareholder, Phyllis is a director, and Velma is an officer. The day-to-day operations of Twisty's are overseen by

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
Yes, the corporations can be held liable...
View Answer