Ch34 Nature of a Corporation Flashcards
These three words represent ownership in a stock corporation.
Share of Stock
This word means “as if.”
Quasi
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.
Articles of Incorporation
This person has many duties that they can do on behalf of the corporation, such as making contracts on behalf of the corporation.
Promoter
These type of corporations are organized for profit and constitute the chief type.
Stock
A corporation has how many types of powers?
Three
These rules are adopted by the board of directors.
Bylaws
This type of corporation is formed to carry out some governmental function.
Public
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.
Revoked
A corporation can be organized in _________ state the promoter chooses.
Any
The corporation’s articles of incorporation determine what type of powers?
Express
These have become a widely used form of business organizations.
Corporations
The power and function of these corporations may be much _________ than those of private corporations.
Greater
This type of corporation is incorporated in another country.
Alien
This type of corporation is usually managed by a small number of people and a small number of stockholders.
S Corporation
Cengage Learning: One chartered in another country.
Alien Corporation
Cengage Learning: Document stating facts about corporation required by law.
Articles of Incorporation
Cengage Learning: Rules enacted by directors to govern corporation’s conduct.
Bylaws
Cengage Learning: One with very small number of shareholders.
Close or Closely Held Corporation
Cengage Learning: One chartered in the state
Domestic Corporation
Cengage Learning: One chartered in another state
Foreign Corporation
Cengage Learning: People initially forming a corporation
Incorporators
Cengage Learning: One formed by private individuals for charitable, educational, religious, social, or fraternal purpose
Not–for–Profit Corporation
Cengage Learning: One formed to do Nongovernmental function
Private Corporation
Cengage Learning: One organized to run a business and earn money
Profit Corporation
Cengage Learning: One who takes initial steps to form corporation
Promoter
Cengage Learning: One formed for governmental function
Public Corporation
Cengage Learning: Public body with powers similar to corporations
Quasi Public Corporation
Cengage Learning: One in which ownership is represented by stock.
Stock Corporation
Cengage Learning: One who agrees to buy stock in proposed corporation.
Subscriber
Cengage Learning: Written agreement to buy stock
Subscription Agreement
Cengage Learning: Contract exceeding corporation’s powers.
Ultra Vires Contract
- A public corporation is one that is traded publicly on the New York Stock Exchange.
False
- All corporations must file with the Securities and Exchange Commission.
False
- A corporation must be bound by all the contracts made by the promoter.
False
- A foreign corporation would be a company that was chartered in Arizona but did business in Colorado, New Mexico, and Utah.
True
- Similar to a partnership, a corporation need not have a corporate name.
False
- A corporation has a right to exist continually for the length of time stated in the state charter or until dissolved.
True
- Corporations need to use a corporate seal when executing written instruments that require the use of a seal when executed by natural individuals.
True
- What three types of powers does a corporation have?
express, incidental, and implied
- A public body that is not a true corporation but has powers similar to a corporation is called a/n ________ corporation.
Quasi
- A contract entered into by a corporation that goes beyond its powers is a/n ________ contract.
Ultra Vires
- Rules enacted by the board of directors to govern the conduct of the corporation are the ________.
Bylaws
- A corporation with a very small number of shareholders is a ________ corporation.
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