Exam 27: Corporate Formation and Financing

A(n)________ is a clause that can be included in the articles of incorporation that stipulates the activities that the corporation can engage in.The corporation can engage in no other purposes or activities.

A corporation that is incorporated in another country is known as a(n)________ corporation.

________ is a preferred stockholder right to be paid a stated dollar amount if a corporation is dissolved and its assets redistributed.

A debenture is a long-term unsecured debt instrument that is based on a corporation's general credit standing.

Which of the following statements best describes a foreign corporation?

The WaterGlove Corporation issues ________ preferred stock that requires the payment of a quarterly dividend of $5.00 per share.The WaterGlove Corporation falls behind with four quarterly payments,i.e.,$20.00 per share of preferred stock.The next quarter,the corporation makes a profit of $25.00 per share.The corporation must pay the $20.00 per share of arrearages to the preferred shareholders plus this quarter's payment of $5.00 per share.

Involuntary dissolution of a corporation that is ordered by the secretary of state if a corporation has failed to comply with certain procedures required by law is known as ________.

A dividend preference is the right to receive a fixed dividend at set periods during the year.

Administrative dissolution is the dissolution of a corporation that has begun business or issued shares upon recommendation of the board of directors and a majority vote of the shares entitled to vote.

Repurchased shares are commonly called treasury shares.

________ are powers beyond express powers that allow a corporation to accomplish its corporate purpose.

Which of the following must necessarily be met for a corporation to elect as a statutory close corporation?

Which of the following is true of an S corporation?

Explain how the treatment of corporations as a separate legal entity frees shareholders from a liability to the organization's debts and obligations.

The corporate officers appoint directors to run the corporation's day-to-day operations.

Which of the following is true for the amendment of articles of incorporation that does not affect the rights attached to shares?

Which of the following is true of a C Corporation?

Which of the following elect members of the board of directors for a corporation?

The person or persons,partnerships,or corporations that are responsible for incorporation of a corporation is known as a(n)________.

Stock that permits a corporation to buy back the preferred stock at some future date is known as ________ stock.