Question 1

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate.

Accepted Answer

A) True 
 B)False

Question 2

Flo and Glen form Health Food Inc. to coordinate the purchase, sale, and delivery of food products from organic farms to hospitals and other institutions. The stated purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is

Accepted Answer

A)   ​a nonprofit corporation.
B)   ​not a corporation.
C)   ​a benefit corporation.
D)   ​a private corporation.E) None of the above
F) A) and B)

Question 3

A firm named Biometric Research makes an attempt to incorporate for a purpose other than making a profit. Biometric is

Accepted Answer

A)   ​a foreign corporation.
B)   ​an alien corporation.
C)   ​a nonprofit corporation.
D)   ​not a corporation.E) None of the above
F) B) and C)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A corporation cannot be formed for purposes other than making a profit.

Accepted Answer

A) True 
 B)False

Question 6

The articles of incorporation serve as a primary source of authority for a corporation's business operations.

Accepted Answer

A) True 
 B)False

Question 7

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

Accepted Answer

A) True 
 B)False

Question 8

Equestrian Stables Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Equestrian Stables is most likely

Accepted Answer

A)   ​a corporation by estoppel.
B)   a de facto corporation.​
C)   ​a de jure corporation.
D)   ​ultra vires.E) A) and C)
F) All of the above

Question 9

​Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Accepted Answer

A)   ​a natural being.
B)   ​a tangible thing.
C)   ​an artificial legal person.
D)   ​a non-entity.E) A) and B)
F) A) and C)

Question 10

Bylaws are the internal rules of management for a corporation.

Accepted Answer

A) True 
 B)False

Question 11

A corporation possesses the same right of access to the courts as a citizen.

Accepted Answer

A) True 
 B)False

Question 12

​The board of directors makes corporate policy decisions.

Accepted Answer

A) True 
 B)False

Question 13

Owen is a registered agent for Pods & Phones, Inc., which incorporated in California. As a registered agent, Owen​

Accepted Answer

A)   ​agreed to sell stock in the firm before it existed.
B)   ​applied to California on the firm's behalf to obtain its corporate charter.
C)   ​represents the firm as a marketing agent.
D)   ​receives legal documents on behalf of the firm.E) A) and B)
F) A) and C)

Question 14

The state can dissolve a corporation for failing to pay taxes.

Accepted Answer

A) True 
 B)False

Question 15

Boutique Bodega Corporation would like to change its corporate status to that of an S corporation. To qualify, the shareholders must not be

Accepted Answer

A)   ​corporations.
B)   ​estates.
C)   ​individuals.
D)   ​partnerships.E) A) and B)
F) A) and C)

Question 16

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

Accepted Answer

A)   ​a domestic corporation.
B)   ​a foreign corporation.
C)   ​an alien corporation.
D)   ​a public corporation.E) A) and B)
F) All of the above

Question 17

Harry and Ilene 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

Accepted Answer

A)   ​an alien corporation.
B)   ​a close corporation.
C)   ​an S corporation.
D)   ​a private corporation.E) A) and B)
F) B) and D)

Question 18

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

​A publicly held corporation is any corporation whose shares are publicly traded in a securities market.

Accepted Answer

A) True 
 B)False

Exam 39: Corporate Formation and Financing

The state can dissolve a corporation for failing to pay taxes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

​Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Correct AnswerverifiedShow Answer

Boutique Bodega Corporation would like to change its corporate status to that of an S corporation. To qualify, the shareholders must not be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Equestrian Stables Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Equestrian Stables is most likely

Correct AnswerverifiedShow Answer

A corporation cannot be formed for purposes other than making a profit.

Correct AnswerverifiedShow Answer

Bylaws are the internal rules of management for a corporation.

Correct AnswerverifiedShow Answer

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

Correct AnswerverifiedShow Answer

​The board of directors makes corporate policy decisions.

Correct AnswerverifiedShow Answer

Flo and Glen form Health Food Inc. to coordinate the purchase, sale, and delivery of food products from organic farms to hospitals and other institutions. The stated purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is

Correct AnswerverifiedShow Answer

A business that holds itself out as being a corporation may not be able to deny corporate status, even if it makes no attempt to incorporate.

Correct AnswerverifiedShow Answer

A corporation does not have perpetual existence in most states unless the articles of incorporation state otherwise.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

​A publicly held corporation is any corporation whose shares are publicly traded in a securities market.

Correct AnswerverifiedShow Answer

A corporation possesses the same right of access to the courts as a citizen.

Correct AnswerverifiedShow Answer

A firm named Biometric Research makes an attempt to incorporate for a purpose other than making a profit. Biometric is

Correct AnswerverifiedShow Answer

Owen is a registered agent for Pods & Phones, Inc., which incorporated in California. As a registered agent, Owen​

Correct AnswerverifiedShow Answer

Harry and Ilene 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

Correct AnswerverifiedShow Answer

The articles of incorporation serve as a primary source of authority for a corporation's business operations.

Correct AnswerverifiedShow Answer

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

Correct Answer
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Dennis and Eve want to form and do business as a corporation-Farm-2-Fork Inc. A corporation is

Correct Answer
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The board of directors makes corporate policy decisions.

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A publicly held corporation is any corporation whose shares are publicly traded in a securities market.

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Owen is a registered agent for Pods & Phones, Inc., which incorporated in California. As a registered agent, Owen

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