Ch34 Nature of a Corporation

Question 1

These three words represent ownership in a stock corporation.

Answer 1

Share of Stock

Question 2

This word means “as if.”

Answer 2

Quasi

Question 3

These are documents set forth the facts prescribed by law for issuance of a certificate of incorporation or a charter and asserting that the corporation has complied with legal requirements.

Answer 3

Articles of Incorporation

Question 4

This person has many duties that they can do on behalf of the corporation, such as making contracts on behalf of the corporation.

Answer 4

Promoter

Question 5

These type of corporations are organized for profit and constitute the chief type.

Answer 5

Stock

Question 6

A corporation has how many types of powers?

Answer 6

Three

Question 7

These rules are adopted by the board of directors.

Answer 7

Bylaws

Question 8

This type of corporation is formed to carry out some governmental function.

Answer 8

Public

Question 9

A subscriber may offer to buy stock when a corporation is about to be formed. However, the offer may be ___________ any time prior to the acceptance.

Answer 9

Revoked

Question 10

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

Answer 10

Any

Question 11

The corporation’s articles of incorporation determine what type of powers?

Answer 11

Express

Question 12

These have become a widely used form of business organizations.

Answer 12

Corporations

Question 13

The power and function of these corporations may be much _________ than those of private corporations.

Answer 13

Greater

Question 14

This type of corporation is incorporated in another country.

Answer 14

Alien

Question 15

This type of corporation is usually managed by a small number of people and a small number of stockholders.

Answer 15

S Corporation

Question 16

Cengage Learning: One chartered in another country.

Answer 16

Alien Corporation

Question 17

Cengage Learning: Document stating facts about corporation required by law.

Answer 17

Articles of Incorporation

Question 18

Cengage Learning: Rules enacted by directors to govern corporation’s conduct.

Answer 18

Bylaws

Question 19

Cengage Learning: One with very small number of shareholders.

Answer 19

Close or Closely Held Corporation

Question 20

Cengage Learning: One chartered in the state

Answer 20

Domestic Corporation

Question 21

Cengage Learning: One chartered in another state

Answer 21

Foreign Corporation

Question 22

Cengage Learning: People initially forming a corporation

Answer 22

Incorporators

Question 23

Cengage Learning: One formed by private individuals for charitable, educational, religious, social, or fraternal purpose

Answer 23

Not–for–Profit Corporation

Question 24

Cengage Learning: One formed to do Nongovernmental function

Answer 24

Private Corporation

Question 25

Cengage Learning: One organized to run a business and earn money

Answer 25

Profit Corporation

Question 26

Cengage Learning: One who takes initial steps to form corporation

Answer 26

Promoter

Question 27

Cengage Learning: One formed for governmental function

Answer 27

Public Corporation

Question 28

Cengage Learning: Public body with powers similar to corporations

Answer 28

Quasi Public Corporation

Question 29

Cengage Learning: One in which ownership is represented by stock.

Answer 29

Stock Corporation

Question 30

Cengage Learning: One who agrees to buy stock in proposed corporation.

Answer 30

Subscriber

Question 31

Cengage Learning: Written agreement to buy stock

Answer 31

Subscription Agreement

Question 32

Cengage Learning: Contract exceeding corporation’s powers.

Answer 32

Ultra Vires Contract

Question 33

1. A public corporation is one that is traded publicly on the New York Stock Exchange.

Answer 33

False

Question 34

2. All corporations must file with the Securities and Exchange Commission.

Answer 34

False

Question 35

3. A corporation must be bound by all the contracts made by the promoter.

Answer 35

False

Question 36

4. A foreign corporation would be a company that was chartered in Arizona but did business in Colorado, New Mexico, and Utah.

Answer 36

True

Question 37

5. Similar to a partnership, a corporation need not have a corporate name.

Answer 37

False

Question 38

6. A corporation has a right to exist continually for the length of time stated in the state charter or until dissolved.

Answer 38

True

Question 39

7. Corporations need to use a corporate seal when executing written instruments that require the use of a seal when executed by natural individuals.

Answer 39

True

Question 40

8. What three types of powers does a corporation have?

Answer 40

express, incidental, and implied

Question 41

9. A public body that is not a true corporation but has powers similar to a corporation is called a/n ________ corporation.

Answer 41

Quasi

Question 42

10. A contract entered into by a corporation that goes beyond its powers is a/n ________ contract.

Answer 42

Ultra Vires

Question 43

11. Rules enacted by the board of directors to govern the conduct of the corporation are the ________.

Answer 43

Bylaws

Question 44

12. A corporation with a very small number of shareholders is a ________ corporation.

Answer 44

Close