Exam 37: Corporate Formation and Financing

If the procedures for incorporation are not followed precisely, others may be able to challenge the existence of the corporation.

The board of directors conducts business by holding formal meetings with recorded minutes.

The first step in the incorporation of a business firm is to

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions related to corporate affairs lies with Metro's

A corporation whose shares are held by relatively few persons is a close corporation .

Cattle Ranch Inc. is a for-profit corporation that is owned by six shareholders who are members of the same family. Cattle Ranch is

A corporation is not liable for the misconduct of its agents or officers.

Roy is a director of Sales Inc. Sales enters into a contract with TeleCenter Corporation in which Roy has a personal interest. Roy must

A corporate director is not liable to the corporation or its shareholders for an honest mistake of judgment.

Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effects of climate change. The stated purpose is to have a material positive impact on society and the environment, and to make a profit. Apt Adapt is

Carmen and Diego are shareholders of Espresso Inc. Carmen's written authorization to Diego to vote her shares at a shareholders' meeting is

Because of their positions within the corporation, directors cannot be held personally liable for violations of statutes enacted to protect the environment.

If a board attempts to manipulate the shareholders' election of a director to reduce the shareholders' influence, the shareholders can challenge the election in court.

Liability for negligence in the performance of corporate duties may extend to

A corporation's authority to act and its liability for those actions is, with respect to the firm's owners,

The day-to-day operations of a corporation are overseen by

Most likely to appear in the articles of incorporation are the names of the company's initial

Sara and Tim form Urban Foods Inc. When it comes to managing Urban, the firm relies on

Because of their positions within the corporation, directors must make full disclosure of any conflicts of interest with respect to corporate contracts.

To focus on individual subjects and increase efficiency, a corporate board can delegate certain tasks to committees of directors.