Exam 27: Corporate Formation and Financing

A detailed set of rules adopted by the board of directors after a corporation is incorporated that contains provisions for managing the business and the affairs of the corporation are referred to as ________.

________ corporations are formed by government entities to meet a specific governmental or political purpose.

Judicial dissolution of a corporation can be instituted by the attorney general of the state of incorporation if the corporation ________.

The secretary of state can obtain administrative dissolution of a corporation if it ________.

Which of the following can dismiss the existence of a corporation?

Provide reasons why investors may show more interest in bonds over debentures as debt securities.

Preferred stock is a type of equity security that is given certain preferences and rights over common stock.

Privately held corporations are for-profit corporations that have hundreds or thousands of shareholders,and their shares are traded on organized securities markets.

Explain how the liability to a promoter's contract is assumed between the promoters and the corporation subject to that contract.

Which of the following criteria must be met for a company to be treated as an S corporation?

Common stockholders are issued common stock certificates to evidence their ownership interest in the corporation.

Professional corporations are also referred to as public corporations.

Which of the following shares have the right to vote?

Articles of incorporation must include the name and address of each promoter.

A long-term debt security that is secured by some form of collateral is referred to as a ________.

Corporation codes are state statutes that regulate the formation,operation,and dissolution of corporations.

Small corporations generally opt to incorporate in the state with the laws that are most favorable to the corporation's internal operations.

Even if the corporation agrees to be bound to the contract,the promoter remains liable on the contract unless the parties enter into a novation.

The parties who sign the articles of incorporation are called promoters.

A corporation has the same basic rights to perform acts and enter into contracts as a physical person.