Question 1

After it is incorporated, a corporation cannot disapprove of the contracts made by the promoter.

Accepted Answer

A) True 
 B)False  False

Question 2

A corporation does not have the right to hold property under its own name.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is an incidental power of a corporation?

Accepted Answer

A)  Power to acquire and convey property 
B)  Power to indorse and accept negotiable instruments 
C)  Power to perform all acts necessary for carrying out its purpose 
D)  Power to have a continuous existence 
A)  Power to acquire and convey property 
B)  Power to indorse and accept negotiable instruments 
C)  Power to perform all acts necessary for carrying out its purpose 
D)  Power to have a continuous existence D

Question 4

A corporation can be organized in any state the promoter chooses.

Accepted Answer

A) True 
 B)False

Question 5

The power to make bylaws and regulations is an incidental power that a corporation possesses.

Accepted Answer

A) True 
 B)False

Question 6

A private corporation is one formed to carry out some governmental function.

Accepted Answer

A) True 
 B)False

Question 7

Any contract entered into by a corporation that goes beyond its powers is called an ultra vires contract.

Accepted Answer

A) True 
 B)False

Question 8

Certificates called shares of stock represent ownership in a stock corporation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of a close corporation?

Accepted Answer

A)  Its profits cannot be reported by stock holders as income in their personal income tax returns. 
B)  It is also known as a closely held corporation. 
C)  It enables a large number of people to own stock. 
D)  Its profits are usually taxed twice. 
A)  Its profits cannot be reported by stock holders as income in their personal income tax returns. 
B)  It is also known as a closely held corporation. 
C)  It enables a large number of people to own stock. 
D)  Its profits are usually taxed twice.

Question 10

What are the three types of powers every corporation has? Explain

Accepted Answer

The three types of powers a corporation

Question 11

If incorporated in another country, a corporation may be referred to as a foreign corporation.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  close corporation 
B)  alien corporation 
C)  domestic corporation 
D)  public corporation 
A)  close corporation 
B)  alien corporation 
C)  domestic corporation 
D)  public corporation

Question 13

A(n) _____ corporation is one that is formed to carry out some governmental function.

Accepted Answer

A)  quasi 
B)  public 
C)  private 
D)  intermediary 
A)  quasi 
B)  public 
C)  private 
D)  intermediary

Question 14

A stock corporation is an example of a _____ corporation.

Accepted Answer

A)  public-benefit 
B)  shell 
C)  for-profit 
D)  public 
A)  public-benefit 
B)  shell 
C)  for-profit 
D)  public

Question 15

Which of the following best describes bylaws?

Accepted Answer

A)  They are rules enacted by directors to govern a corporation's conduct. 
B)  They are rules of conduct given to the board of directors during incorporation. 
C)  They are rules and regulations for individual stockholders. 
D)  They are rules relating to international expansion and entry. 
A)  They are rules enacted by directors to govern a corporation's conduct. 
B)  They are rules of conduct given to the board of directors during incorporation. 
C)  They are rules and regulations for individual stockholders. 
D)  They are rules relating to international expansion and entry.

Question 16

A person who takes the initial steps to form a corporation is known as a(n) _____.

Accepted Answer

A)  subscriber 
B)  developer 
C)  initiator 
D)  promoter 
A)  subscriber 
B)  developer 
C)  initiator 
D)  promoter

Question 17

A not-for-profit corporation is one formed by private individuals for some charitable purpose.

Accepted Answer

A) True 
 B)False

Question 18

The people who form a corporation are known as subscribers.

Accepted Answer

A) True 
 B)False

Question 19

A written agreement to buy a corporation's stock made in advance of the actual incorporation is known as a subscription agreement.

Accepted Answer

A) True 
 B)False

Question 20

Of the following people, who would be considered a subscriber?

Accepted Answer

A)  A person who buys assets from a corporation 
B)  A person who buys stock in a proposed corporation 
C)  A person who initiates steps to form a corporation 
D)  A person who buys journals and publications from a corporation 
A)  A person who buys assets from a corporation 
B)  A person who buys stock in a proposed corporation 
C)  A person who initiates steps to form a corporation 
D)  A person who buys journals and publications from a corporation

Exam 34: Nature of a Corporation

After it is incorporated, a corporation cannot disapprove of the contracts made by the promoter.

A corporation does not have the right to hold property under its own name.

Which of the following is an incidental power of a corporation?

A corporation can be organized in any state the promoter chooses.

The power to make bylaws and regulations is an incidental power that a corporation possesses.

A private corporation is one formed to carry out some governmental function.

Any contract entered into by a corporation that goes beyond its powers is called an ultra vires contract.

Certificates called shares of stock represent ownership in a stock corporation.

Which of the following is true of a close corporation?

What are the three types of powers every corporation has? Explain

If incorporated in another country, a corporation may be referred to as a foreign corporation.

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

A(n) _____ corporation is one that is formed to carry out some governmental function.

A stock corporation is an example of a _____ corporation.

Which of the following best describes bylaws?

A person who takes the initial steps to form a corporation is known as a(n) _____.

A not-for-profit corporation is one formed by private individuals for some charitable purpose.

The people who form a corporation are known as subscribers.

A written agreement to buy a corporation's stock made in advance of the actual incorporation is known as a subscription agreement.

Of the following people, who would be considered a subscriber?

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

Filters