Question 1

A partnership cannot be a shareholder in an S corporation.

Accepted Answer

A) True 
 B)False

Question 2

Appraisal rights normally extend to regular mergers and consolidations.

Accepted Answer

A) True 
 B)False

Question 3

Corporate Properties,Inc.,attempts to acquire a substantial number of the shares of Downtown Investment Corporation through a public offer to Downtown's shareholders.This is

Accepted Answer

A)  a consolidation.
B)  a tender offer.
C)  ashort-form merger.
D)  a termination.E) A) and B)
F) C) and D)

Question 4

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

Accepted Answer

A)  file a plan of merger with the secretary of state.
B)  file an article of merger with Pepper.
C)  make a tender offer to the shareholders of Pepper.
D)  make a tender offer to the shareholders of Salt.E) B) and C)
F) A) and D)

Question 5

Eye Appliance Company and Fresh Views,Inc.,wish to combine all of their assets,stock,and personnel into a new firm to be called Goggles Corporation.This is

Accepted Answer

A)  a consolidation.
B)  a merger.
C)  an exchange of assets.
D)  a takeover.E) B) and C)
F) None of the above

Question 6

Lyla is a common shareholder in Norman's Nutty Nuts Corporation.As a common shareholder,Lyla is

Accepted Answer

A)  guaranteed regular payments of dividends.
B)  not guaranteed any payments of dividends.
C)  not given any voting rights.
D)  liable for all of Norman's Nutty Nuts's debts.E) None of the above
F) B) and D)

Question 7

Wings2Go Corporation fails to hold an organizational meeting.In this circumstance,at common law 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) A) and C)
F) B) and C)

Question 8

Boutique 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,the shareholders must not be

Accepted Answer

A)  corporations.
B)  estates.
C)  individuals.
D)  partnerships.E) A) and B)
F) C) and D)

Question 9

Finn and Glenda want to form and do business as Hobby Crafts Corporation.A corporation is

Accepted Answer

A)  a natural person.
B)  a tangible thing.
C)  an artificial legal person.
D)  a visible radiance.E) A) and B)
F) A) and C)

Question 10

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.E) None of the above
F) B) and C)

Question 11

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation.Lily and Moe are Kleen's officers.As in other corporations,the responsibility for the overall management of Kleen rests with

Accepted Answer

A)  the board of directors.
B)  the officers.
C)  the owners.
D)  the shareholders.E) All of the above
F) C) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Exam 24: Corporate Formation, financing, and Termination

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

Correct Answer
verified

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

Correct Answer
verified

Boutique 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,the shareholders must not be

Correct Answer
verified

Corporate Properties,Inc.,attempts to acquire a substantial number of the shares of Downtown Investment Corporation through a public offer to Downtown's shareholders.This is

Correct Answer
verified

A partnership cannot be a shareholder in an S corporation.

Correct Answer
verified

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

Correct Answer
verified

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation.Lily and Moe are Kleen's officers.As in other corporations,the responsibility for the overall management of Kleen rests with

Correct Answer
verified

Eye Appliance Company and Fresh Views,Inc.,wish to combine all of their assets,stock,and personnel into a new firm to be called Goggles Corporation.This is

Correct Answer
verified

Finn and Glenda want to form and do business as Hobby Crafts Corporation.A corporation is

Correct Answer
verified

Lyla is a common shareholder in Norman's Nutty Nuts Corporation.As a common shareholder,Lyla is

Correct Answer
verified

Appraisal rights normally extend to regular mergers and consolidations.

Correct Answer
verified

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

Correct Answer
verified

Exam 24: Corporate Formation, financing, and Termination

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Boutique 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,the shareholders must not be

Correct AnswerverifiedShow Answer

Corporate Properties,Inc.,attempts to acquire a substantial number of the shares of Downtown Investment Corporation through a public offer to Downtown's shareholders.This is

Correct AnswerverifiedShow Answer

A partnership cannot be a shareholder in an S corporation.

Correct AnswerverifiedShow Answer

Salt Corporation wants to acquire or merge with Pepper Corporation.Salt should

Correct AnswerverifiedShow Answer

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation.Lily and Moe are Kleen's officers.As in other corporations,the responsibility for the overall management of Kleen rests with

Correct AnswerverifiedShow Answer

Eye Appliance Company and Fresh Views,Inc.,wish to combine all of their assets,stock,and personnel into a new firm to be called Goggles Corporation.This is

Correct AnswerverifiedShow Answer

Finn and Glenda want to form and do business as Hobby Crafts Corporation.A corporation is

Correct AnswerverifiedShow Answer

Lyla is a common shareholder in Norman's Nutty Nuts Corporation.As a common shareholder,Lyla is

Correct AnswerverifiedShow Answer

Appraisal rights normally extend to regular mergers and consolidations.

Correct AnswerverifiedShow Answer

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

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