Exam 25: Corporate Formation, financing, and Termination

Eager Beaver Corporation fails to hold its organizational meeting to adopt bylaws.Under this circumstance,Eager Beaver is most likely

Skyla and Terry want to form and do business as Unique Boutique Corporation.The state statute governing the formation and operation of their corporation is most likely guided by

A corporation cannot be formed without a profit-making purpose.

Shareholder approval is required when a corporation buys all of the as?sets of an?other company.

Mall Stores Corporation owns 95 percent of the shares of Niche Retail Corporation.Mall Stores combines with Niche Retail,but only Mall Stores continues to exist.This transaction was

Once formed,a corporation cannot be dissolved involuntarily.

When a sale of assets amounts to what in effect is a consolidation,the ac?quiring corporation does not inherit the selling corporation's liabilities.

Steel Tool Corporation and Thrifty Hardware Company combine so that all that remains after the papers have been signed is Steel Tool.This is

The choice of a corporate name is subject to state approval.

A shareholder is an "owner" of a corporation.

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation.Lily and Moe are Kleen's officers.As in other corporations,the responsibility for the overall management of Kleen rests with

A court can dissolve a corporation for mismanagement.

Winding up a corporation's affairs can only be performed under court supervision.

Standard Business Corporation can be compelled to dissolve by

Starr Cardio,Inc. ,is a small business.Ted,Uma,and eleven other members of the Starr family own all of its stock.Currently,Starr's income is taxed at the corporate level and,after being distributed to the family members,at the shareholder level.Can Starr retain its corporate status but oth?er?wise avoid this double taxation? If so,how?

After a merger,a disappearing corporation's preexisting rights disappear.

Like other corporations,Workday Personnel Corporation can expand its operations through

A shareholder in a professional corporation can be liable for malpractice arising from the rendering of professional services.

Superior Home Products,Inc. ,is a corporation.Superior's implied powers enable it to

Candy Corporation has a right of action against Dina.Candy merges with Eats,Inc. ,with Eats absorbing Candy.After the merger,Candy's right of action against Dina can be exercised by