Exam 27: Corporations and Franchising

One method used by corporations to resist a takeover attempt is called

Only the directors of a corporation may invalidate an ultra vires act.

A(n) ____________________ occurs when a group of investors buy all the stock of a public corporation and convert it into a private corporation.

When a corporation issues new stock, current stockholders may purchase additional shares before these shares are offered to the public.

Double taxation means that the

Acts of a corporation that exceed its express or implied authority are

Stock with no printed value is known as ____________________ stock.

A technique for enabling large stockholders to exercise control in a corporation is

The powers of a corporation are found in

A court's holding that a corporation was organized solely to avoid liability is known as "piercing the corporate veil".

Corporations receive permission to operate from the state or the federal government.

A corporation comes into existence when the

A corporation owned by very few stockholders is called a(n) ____________________ corporation.

A(n) ____________________ corporation, one organized to make money, is the usual form of organization for manufacturing, financial, and service businesses.

Stockholders may inspect the corporate records at any time and for any purpose.

A corporation organized to practice accounting is an example of a(n) ____________________ corporation.

For federal income tax purposes, a Chapter S corporation is treated as

A corporation may obtain financing by means of

Day-to-day management is the responsibility of the

The terms of a franchise relationship are found primarily in