18 - I don\'t know what to write here sorry PDF

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I don't know what to write here sorry...

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Chapter 18: Corporations TRUE/FALSE QUESTIONS 1. t

Corporate profits can be subject to double taxation.

2. t A corporation is referred to as a domestic corporation by its home state. 3. f An S corporation is treated the same as a regular corporation for tax purposes 4. t The primary document needed to incorporate a business is the articles of incorporation. 5. f statutes.

Implied powers of a corporation are expressed in state

6. f Shareholders are the ultimate authority in every corporation. 7. f In most states, one individual cannot be both an officer and a director. 8. f Directors are entitled to use confidential corporate information for their personal advantage. 9. t Shareholders must approve fundamental changes affecting the corporation before the changes can be implemented. 10. t Before shareholders can bring a derivative suit, they must submit a written demand to the corporation, asking the board of directors to take action. MULTIPLE CHOICE QUESTIONS 11. Felicity and Gideon want to form and do business as Home Healthcare Corporation. A corporation is

a. b. c. **** d.

a natural person. a tangible person. an artificial person. a visible person.

12. The shares of Capital Corporation are publicly traded in securities markets. Capital Corporation is a. b. c. d. ****

a private corporation. a privately held corporation. a public corporation. a publicly held corporation.

13. Boutique Corporation would like to change its corporate status to avoid income taxes at the corporate level. To qualify, the shareholders must not be a. b. c. d. *****

corporations. estates. individuals. partnerships.

14. Like the bylaws of other corporations, the bylaws of Farmland Equipment, Inc., a. b. c. **** d. charge.

establish the operating name of the corporation. establish the value and classes of corporate stock. were adopted at its first organizational meeting. were submitted for approval to the public official in

15. Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the implied power to a. b. c. d. ****

issue stocks and bonds. execute contracts and negotiable instruments. buy and sell (or lease) property. perform all acts reasonably appropriate and

necessary to accomplish its corporate purposes. 16. Sophie and Tiny incorporate their beverage-container business as U-Twist Products, Inc. The first board of directors may be appointed by the firm’s a. b. **** c. d.

board of directors. incorporators. officers. shareholders.

17. VeriVisual Company makes HD 3D film and video equipment. VeriVisual is like most corporations in that its officers are hired by the firm’s a. **** b. c. d.

board of directors. incorporators. other officers. shareholders.

18. Genna is a director of Fab Stuff Corporation. Without informing Fab, Genna starts up Evertrendy, Inc., to compete with Fab. Genna is liable for breach of a. b. c. **** d.

no duty, right, or rule. the business judgment rule. the duty of loyalty. the right of participation.

19. Heidi and Ian are directors and shareholders of Globe Software, Inc. Heidi’s written authorization to Ian to vote Heidi’s shares at a Globe shareholders’ meeting is a. b. c. **** d.

a violation of the duty of loyalty. a preemptive right. a proxy. a quorum.

20.

Ruben is a shareholder of Speed Bikes Company (SBC).

When the directors fail to undertake an action to redress a wrong suffered by SBC, Ruben files a suit on the firm’s behalf. Any damages recovered by Ruben’s suit will normally go to a. b. c. d.****

Ruben. SBC. SBC’s directors. the state in which SBC is incorporated...