Exam 39: Corporate Formation and Financing

Urban Commerce, Inc., issues bonds, which are also known as

Demario and Evander want to form and do business as a corporation-Farm-2-Fork Restaurant Inc. A corporation is

Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form

Neci and Olwen want to form and do business as a corporation-Pastries & Pies Inc. A corporation is a legal entity created and recognized by

The corporation is a creature of the common law.

The registered agent is the person who can receive legal punishment (such as fines and imprisonment) on behalf of the corporation.

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto or de jure acts.

The alter-ego theory is applied when a corporation is so dominated and controlled by an individual or group that the separate identities of the person (or the group) and the corporation are no longer distinct.

Preferred stock is included among the liabilities of a business because it is equity.

A court will pierce the corporate veil of a corporation that is formed to evade an existing legal obligation.

The Revised Model Business Corporation Act gives a close corporation less flexibility in determining its rules of operation.

One of the key advantages of the corporate form is the unlimited liability of its owners.

Miracle Mobile Devices, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufactur?ing and distributing a newly pat?ented tablet, (2) is owned by five share?holders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Miracle is

Like the bylaws of other corporations, the bylaws of Equipment Leasing, Inc.,

There are no important consequences if the procedures for incorporation are not followed precisely.

In the absence of express constitutional, statutory, or other provisions, the corporation has no implied powers.

A foreign corporation normally does not need a certificate of authority to sell goods or services via the Internet or by mail.

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

If a corporation has S corporation status, it can avoid the imposition of income taxes at the corporate level.

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