Exam 33: Corporate Formation and Financing

The corporation is a creature of common law.

Like the bylaws of other corporations,the bylaws of Rocks,Paper & Scissors,Inc.,

A corporation has perpetual existence in most states unless the articles of incorporation state otherwise.

Brats & Brews,Inc.,files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of

Techno Talent & Personnel,Inc.,is a corporation. Techno Talent's implied powers enable it to

Agents and employees of Deco Arts Corporation and Echo Imitations Inc. are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can the corporations be held liable for these crimes? If so,how can they be punished?

Music Makers Inc. has a stated purpose to sell musical instruments. If chief executive officer Ned contracts with Open Carry Firearms in Music's name to sell a shotgun,he has likely committed

A court will not pierce the corporate veil of a corporation that is merely set up never to make a profit.

Neci and Olwen want to form and do business as a corporation-Pastries & Pies Inc. Its existence depends generally on

Firms are obligated to return a principal amount per share to each holder of common stock.

Venture capital is capital provided to new business ventures by professional,outside investors.

An alien corporation is a corporation formed in another country.

A corporation possesses the same right of access to the courts as a natural person.

Rob owns Solar Fuel Corporation. Rob uses Solar Fuel's funds to pay his personal expenses,creates Thermal Power Inc. to engage in the same business as Solar Fuel,transfers Solar Fuel's assets to Thermal Power,and petitions Solar Fuel into bankruptcy. This most likely warrants

In certain instances of fraud,a court may "pierce the corporate veil" to hold the shareholders individually liable.

A corporate director "owns" the corporation.

Dollars & Sense,Inc.,is incorporated in the state of New Jersey and is doing business in the state of New York. In New York,Dollars & Sense is properly referred to as

Bay City Merchants Corporation has six shareholders,four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act,this most likely warrants

Erin is a shareholder in Far East Adventures. As a shareholder,Erin

Hollywood Lights,Inc. substantially complies with all conditions precedent to incorporation. Hollywood is most likely