Question 1

Regarding Chinese Law,which of the following statements is accurate?

Accepted Answer

A)  Under the two tiers of corporate power in China,the board of directors is the lowest and corporate officers compose the top tier.
B)  Under the two tiers of corporate power in China,the board of supervisors is the lowest and corporate officers compose the top tier.
C)  Under the three tiers of corporate power in China,the board of supervisors is the lowest,the board of directors makes up the second,and corporate officers compose the top tier.
D)  Under the three tiers of corporate power in China,corporate officers make up the lowest tier,the board of supervisors makes up the second,and the board of directors composes the top tier.
E)  Under the three tiers of corporate power in China,the board of directors is the lowest,the board of supervisors makes up the second,and corporate officers compose the top tier.F) C) and E)
G) D) and E)

Question 2

Rules and regulations that govern the corporation's internal management are known as corporate ________.

Accepted Answer

A)  Authorizations
B)  Prohibitions
C)  Bylaws
D)  Statutes
E)  RequirementsF) A) and E)
G) D) and E)

Question 3

A court may hold that a defective corporation is a[n] ________ in order to prevent it from claiming it is not a corporate entity in order to escape liability to a third party.

Accepted Answer

A)  Corporation by reservation
B)  De facto corporation
C)  Inactive corporation
D)  Corporation by estoppel
E)  De jure corporationF) B) and C)
G) C) and D)

Question 4

In regard to losses,what type of tax treatment would an S corporation provide?

Accepted Answer

A)  Losses may only be deducted from shareholders' personal income when the S corporation has shown a profit for at least three straight years.
B)  Shareholders may deduct corporate losses from their personal income.
C)  Losses may only be deducted from the S corporation's taxes,not the shareholders' personal income.
D)  Losses may only be deducted from shareholders' personal income when the S corporation has shown a profit for at least two years.
E)  Losses may only be deducted from shareholders' personal income when the shareholder's gains from other endeavors exceed losses from the S corporation.F) C) and E)
G) C) and D)

Question 5

Owners of which of the following types of stock enjoy preferences with respect to assets and dividends?

Accepted Answer

A)  Complex
B)  Common
C)  Acknowledged
D)  Simple
E)  PreferredF) C) and E)
G) B) and E)

Question 6

The only authority possessed by corporations is the powers granted to them in their articles of incorporation and through state incorporation statutes.

Accepted Answer

A) True 
 B)False

Question 7

A bond which allows shareholders to exchange the bond for shares of company stock is an)  ________ bond?

Accepted Answer

A)  Income
B)  Convertible
C)  Secured
D)  Unsecured
E)  EquityF) B) and C)
G) B) and E)

Question 8

Is there an impediment to the business qualifying as an S Corporation,based on the information available?

Accepted Answer

A)  Yes,because a business must operate as a general corporation for at least two years before converting to an S corporation.
B)  Yes,because a business must operate as a partnership for at least two years before converting to an S corporation.
C)  No.
D)  Yes,because there must be at least 100 shareholders involved.
E)  Yes,because at least one-third of the shareholders in an S corporation must be corporations.F) None of the above
G) A) and C)

Question 9

When a corporation pays taxes on dividends and shareholders pay taxes on dividends receive,this is an example of:

Accepted Answer

A)  The shareholder tax penalty
B)  The corporate tax penalty
C)  The special dividend tax rule
D)  Tax fairness
E)  Double taxationF) A) and E)
G) None of the above

Question 10

What were Min-ji,Marcus,and Penelope seeking by requesting a novation in regards to the lawsuit threatened by Callie?

Accepted Answer

A)  An agreement by which Min-ji,Marcus,Penelope,Callie,and the corporation would agree that the corporation would be liable to Callie,and that Min-ji,Marcus,and Penelope would be released.
B)  An agreement by which Callie agreed to delay her claim for one year in order to give the corporation a chance to make a profit.
C)  An agreement by which the corporation would be substituted as the debtor instead of Min-ji,Marcus,and Penelope so long as the corporation made a profit in its first year of existence.
D)  An agreement by which Min-ji,Marcus,Penelope,Callie,and the corporation would agree that the company would be liable to Callie for one half the debt and that Min-ji,Marcus,and Penelope would be liable for only one half of the debt.
E)  An agreement by which Min-ji,Marcus,and Penelope would be discharged from the debt so long as the new corporation agreed to do an agreed upon amount of business with Callie for a certain period.F) C) and D)
G) All of the above

Question 11

In which situations is a court likely to pierce the corporate veil?

Accepted Answer

Courts are likely to...

Question 12

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Accepted Answer

A)  Preferred
B)  Complex
C)  Common
D)  Acknowledged
E)  SimpleF) A) and C)
G) B) and D)

Question 13

Two sisters and their parents own an incorporated hotel chain together.No stock is sold to the general public.What type of corporation is the hotel chain most likely to be?

Accepted Answer

A)  Alien corporations
B)  Minority shareholder controlled corporations
C)  Closely held corporations
D)  Foreign corporations
E)  Carefully held corporationsF) B) and E)
G) A) and B)

Question 14

A bond in which no assets support the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Accepted Answer

A)  Income
B)  Equity
C)  Secured
D)  Convertible
E)  UnsecuredF) A) and B)
G) C) and E)

Question 15

Which of the following is true of taxes and dividends?

Accepted Answer

A)  Corporations pay federal,but not state taxes on dividends
B)  Shareholders pay taxes on dividends they receive
C)  Dividends are not taxed
D)  Corporations may take a tax deduction for dividends
E)  Corporations pay state,but not federal,taxes on dividendsF) A) and B)
G) B) and E)

Question 16

Corporations are considered to be legal persons.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a corporation that has not substantially met the requirements of the state incorporation statute,but courts recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated?

Accepted Answer

A)  A de jure corporation
B)  A corporation by reservation
C)  A corporation by estoppel
D)  A de facto corporation
E)  An inactive corporationF) A) and B)
G) A) and E)

Question 18

Which of the following was the result on appeal in King v.American Family Mutual Insurance Company;American Standard Insurance Company of Wisconsin,the case in the text involving whether for an injury occurring outside the state,personal jurisdiction in Montana could be asserted over the defending insurers who had appointed an agent for service of process there but had done no business in the state?

Accepted Answer

A)  That regardless of whether an agent for service of process had been appointed,as a matter of law,insurers may be sued in any state in the U.S.
B)  That Montana law regarding appointment of an agent for service of process does not,standing alone,subject foreign corporations to jurisdiction in Montana for acts performed outside of Montana,at least when the corporations transact no business in the state.
C)  That regardless of whether an agent for service of process had been appointed,as a matter of law,an insurer may only be sued in its state of incorporation.
D)  That appointment of an agent for service of process does,standing alone,subject foreign corporations to jurisdiction in Montana for acts performed outside of Montana.
E)  That regardless of whether an agent for service of process had been appointed,as a matter of law,an insurer may only be sued in the state in which its principal place of business is located.F) B) and E)
G) A) and B)

Question 19

A bond in which specific property supports the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Accepted Answer

A)  Convertible
B)  Unsecured
C)  Secured
D)  Income
E)  EquityF) C) and D)
G) None of the above

Question 20

Which of the following is an implied power of a corporation?

Accepted Answer

A)  Power to establish rules for managing the corporation.
B)  Power to have perpetual existence.
C)  Power given in the statement of corporate purpose in the articles of incorporation.
D)  Power to lend money.
E)  Power to sue and be sued in the corporations' name.F) B) and E)
G) A) and E)

Exam 38: Corporations: Formation and Financing

Corporations are considered to be legal persons.

Correct Answer
verified

A bond in which specific property supports the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Correct Answer
verified

In regard to losses,what type of tax treatment would an S corporation provide?

Correct Answer
verified

Is there an impediment to the business qualifying as an S Corporation,based on the information available?

Correct Answer
verified

Rules and regulations that govern the corporation's internal management are known as corporate ________.

Correct Answer
verified

Which of the following is true of taxes and dividends?

Correct Answer
verified

A bond in which no assets support the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Correct Answer
verified

Correct Answer
verified

Two sisters and their parents own an incorporated hotel chain together.No stock is sold to the general public.What type of corporation is the hotel chain most likely to be?

Correct Answer
verified

Owners of which of the following types of stock enjoy preferences with respect to assets and dividends?

Correct Answer
verified

A bond which allows shareholders to exchange the bond for shares of company stock is an) ________ bond?

Correct Answer
verified

Which of the following is a corporation that has not substantially met the requirements of the state incorporation statute,but courts recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated?

Correct Answer
verified

What were Min-ji,Marcus,and Penelope seeking by requesting a novation in regards to the lawsuit threatened by Callie?

Correct Answer
verified

When a corporation pays taxes on dividends and shareholders pay taxes on dividends receive,this is an example of:

Correct Answer
verified

Regarding Chinese Law,which of the following statements is accurate?

Correct Answer
verified

The only authority possessed by corporations is the powers granted to them in their articles of incorporation and through state incorporation statutes.

Correct Answer
verified

Which of the following is an implied power of a corporation?

Correct Answer
verified

In which situations is a court likely to pierce the corporate veil?

Correct Answer
verified
Courts are likely to...
View Answer

A court may hold that a defective corporation is a[n] ________ in order to prevent it from claiming it is not a corporate entity in order to escape liability to a third party.

Correct Answer
verified

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Correct Answer
verified

Exam 38: Corporations: Formation and Financing

Corporations are considered to be legal persons.

Correct AnswerverifiedShow Answer

A bond in which specific property supports the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Correct AnswerverifiedShow Answer

In regard to losses,what type of tax treatment would an S corporation provide?

Correct AnswerverifiedShow Answer

Is there an impediment to the business qualifying as an S Corporation,based on the information available?

Correct AnswerverifiedShow Answer

Rules and regulations that govern the corporation's internal management are known as corporate ________.

Correct AnswerverifiedShow Answer

Which of the following is true of taxes and dividends?

Correct AnswerverifiedShow Answer

A bond in which no assets support the corporations' obligation to repay the face value of the bond is called an) ________ bond?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Two sisters and their parents own an incorporated hotel chain together.No stock is sold to the general public.What type of corporation is the hotel chain most likely to be?

Correct AnswerverifiedShow Answer

Owners of which of the following types of stock enjoy preferences with respect to assets and dividends?

Correct AnswerverifiedShow Answer

A bond which allows shareholders to exchange the bond for shares of company stock is an) ________ bond?

Correct AnswerverifiedShow Answer

Which of the following is a corporation that has not substantially met the requirements of the state incorporation statute,but courts recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated?

Correct AnswerverifiedShow Answer

What were Min-ji,Marcus,and Penelope seeking by requesting a novation in regards to the lawsuit threatened by Callie?

Correct AnswerverifiedShow Answer

When a corporation pays taxes on dividends and shareholders pay taxes on dividends receive,this is an example of:

Correct AnswerverifiedShow Answer

Regarding Chinese Law,which of the following statements is accurate?

Correct AnswerverifiedShow Answer

The only authority possessed by corporations is the powers granted to them in their articles of incorporation and through state incorporation statutes.

Correct AnswerverifiedShow Answer

Which of the following is an implied power of a corporation?

Correct AnswerverifiedShow Answer

In which situations is a court likely to pierce the corporate veil?

Correct AnswerverifiedCourts are likely to...View AnswerShow Answer

A court may hold that a defective corporation is a[n] ________ in order to prevent it from claiming it is not a corporate entity in order to escape liability to a third party.

Correct AnswerverifiedShow Answer

Owners of which of the following types of stock own a portion of a corporation but do not enjoy any preferences?

Correct AnswerverifiedShow Answer

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verified
Courts are likely to...
View Answer

Correct Answer
verified

Correct Answer
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