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BUL 5810 - CORPORATIONS EXAM WITH QUESTIONS AND ANSWERS
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BUL 5810 - CORPORATIONS EXAM WITH QUESTIONS AND ANSWERS...
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BUL 5810 - CORPORATIONS EXAM WITH QUESTIONSAND ANSWERS
Which of the following is NOT a characteristic of the corporate form of doing
business? - ANSWER Informal organization
All of the following are characteristics of a corporation EXCEPT:
a. it has perpetual existence.
b. it is a legal entity of its own.
c. it is able to be sued and to sue.
d. it is usually managed by its owners. - ANSWER It is usually managed by its
owners
A corporation is considered a citizen: - ANSWER of the state in both
(1) where it has a principal office
(2) its incorporation
Which of the following is correct regarding a foreign corporation?
a. A foreign corporation is incorporated in a foreign country.
b. Failure to obtain a certificate of authority to transact business in the state
impairs the validity of a contract entered into by the corporation.
c. A foreign corporation transacting business within a particular state without
having first qualified cannot use the state court to maintain a lawsuit until the
corporation obtains a certificate of authority. - ANSWER A foreign corporation
transacting business within a particular state without having first qualified cannot
use the state court to maintain a lawsuit until the corporation obtains a certificate of
authority
A promoter of a corporation has a fiduciary duty to: - ANSWER any other
, promoters of that corporation
The possible consequences of defective incorporation include all of the following:
a. the state may bring an action against the association for involuntary dissolution.
b. the association always being liable for an obligation.
c. the associates are held personally liable to a third party.
d. a third party asserts it is not liable to the association. - ANSWER the association
always being liable for an obligation
Which of the following is the basic governing document of a corporation? -
ANSWER Articles of Incorporation
The incorporators would typically do which of the following?
a. Purchase outstanding shares.
b. Assemble the assets.
c. Sign the charter. - ANSWER Assemble the assets
Whether a corporation is a de facto corporation may be challenged by: - ANSWER
the state in which the business attempted to incorporate
Courts have responded by piercing the veil when the shareholders have:
a. not followed the formalities of corporate procedures.
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