Exam 34: Corporate Formation and Financing

A corporation is an artificial being.

Painless Dental Equipment Company is incorporated in Colorado. In Wyoming, Painless is

Bonds represent the borrowing of funds by firms.

State laws regarding corporations are uniform.

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

Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they

Custom Business Applications Corporation substantially complies with all conditions prece?dent to incorpo?ration. Custom Business is most likely

The day-to-day business of a corporation is managed by officers employed by the board of directors.

A corporation has perpetual existence in most states unless the ar?ti?cles of incorporation state otherwise.

Like the bylaws of other corporations, the bylaws of Retail Sales, Inc.,

A corporation does not possess the same right of access to the courts as natural persons.

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

Any person who buys preferred stock has priority over a holder of common stock to payment on the corporation's dissolution.

Finn and Glenda want to form and do business as Hobby Crafts Corporation. A corporation is

Pola and Quincey want to form and do business as River Tours Corporation. A corporation can consist of

Luke is an owner of Lucky Luke's Corporation. Luke uses the corporate entity of Lucky Luke's to perpetuate fraud. In this case, a court is likely to expose Luke to personal liability by

Bylaws are the internal rules of management for a corporation.

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

A corporate name must include the word Corporation, Incorporated, Company, or Limited, or abbreviations of these terms.

A close corporation can operate as an S corporation.