Question 1

A not-for-profit corporation usually issues stock.

Accepted Answer

A) True 
 B)False  False

Question 2

The articles of incorporation constitutes a contract between the corporation and the state.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) Power to do all acts reasonably necessary for carrying out its purpose 
B) Power to indorse and accept negotiable instruments 
C) Power to borrow money and contract debts 
D) Power to have a continuous existence 
A) Power to do all acts reasonably necessary for carrying out its purpose 
B) Power to indorse and accept negotiable instruments 
C) Power to borrow money and contract debts 
D) Power to have a continuous existence

Question 5

In the state in which it received its initial charter a corporation is called a domestic corporation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not true of a close corporation?

Accepted Answer

A) It has a large number of stockholders 
B) Its stockholders are often actively involved in the managment 
C) It has a small number of stockholders. 
D) Its profits are taxed twice, unless it has elected S-Corp status 
A) It has a large number of stockholders 
B) Its stockholders are often actively involved in the managment 
C) It has a small number of stockholders. 
D) Its profits are taxed twice, unless it has elected S-Corp status

Question 7

Which of the following does NOT determine the extent of one's rights and liabilities in a for-profit corporation?

Accepted Answer

A) Length of ownership of stock 
B) Number of shares of stock owned 
C) Corporation charter 
D) Corporation by-laws 
A) Length of ownership of stock 
B) Number of shares of stock owned 
C) Corporation charter 
D) Corporation by-laws

Question 8

​ 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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 adopted by the shareholders. 
C) They may contain any provision, even against public policy if agreed upon by all shareholders. 
D) They are rules enacted by officers to govern their conduct. 
A) They are rules enacted by directors to govern a corporation's conduct. 
B) They are rules of conduct adopted by the shareholders. 
C) They may contain any provision, even against public policy if agreed upon by all shareholders. 
D) They are rules enacted by officers to govern their conduct.

Question 11

Statutes frequently require a corporation's name to end with "Corporation" or "incorporated" of an abbreviation thereof, or other indication of corporate status.

Accepted Answer

A) True 
 B)False

Question 12

​ A(n)corporation is one that is formed to perform some nongovernmental function.

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

The powers of public corporations may be much greater than those of private corporations. ​

Accepted Answer

A) True 
 B)False

Question 15

A subscription agreement is written agreement to buy stock.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

The three types of powers every corporat

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

​ When does a corporation become a party to contracts made by the person forming a corporation?

Accepted Answer

A) When the corporation is incorporated. 
B) When the 50% of the stock is sold. 
C) When the corporation approves contracts made by the person forming the corporation. 
D) When the other parties to the contracts approve the corporation's existence. 
A) When the corporation is incorporated. 
B) When the 50% of the stock is sold. 
C) When the corporation approves contracts made by the person forming the corporation. 
D) When the other parties to the contracts approve the corporation's existence.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 32: Nature of a Corporation

A not-for-profit corporation usually issues stock.

The articles of incorporation constitutes a contract between the corporation and the state.

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

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

In the state in which it received its initial charter a corporation is called a domestic corporation.

Which of the following is not true of a close corporation?

Which of the following does NOT determine the extent of one's rights and liabilities in a for-profit corporation?

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

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

Which of the following best describes bylaws?

Statutes frequently require a corporation's name to end with "Corporation" or "incorporated" of an abbreviation thereof, or other indication of corporate status.

​ A(n)corporation is one that is formed to perform some nongovernmental function.

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

The powers of public corporations may be much greater than those of private corporations. ​

A subscription agreement is written agreement to buy stock.

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

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

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

​ When does a corporation become a party to contracts made by the person forming a corporation?

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

Introduction to Law

Courts and Court Procedures

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 Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Ownership of a Corporation

Management and Dissolution of a Corporation

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 Trust

Filters

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

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

A(n)corporation is one that is formed to perform some nongovernmental function.

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

The powers of public corporations may be much greater than those of private corporations.

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

When does a corporation become a party to contracts made by the person forming a corporation?