Question 1

Regarding Société Anonymes (SA)  companies in France,

Accepted Answer

A)   SA companies offer shares to the public and must have at least seven shareholders.
B)   SA companies do not have to offer shares to the public and may keep all income statements private.
C)   French law requires that all SA companies register with the French authorities.
D)   French law requires that a portion of all profits be repatriated to the government.
E)   SA companies share personal liability for all member's misdeeds.F) A) and B)
G) B) and D)

Question 2

Discuss the rights of corporations, if any, to due process. Also discuss whether corporations have protection with regard to the Fourth Amendment, and in what manner.

Accepted Answer

Courts have ruled that corporations are ...

Question 3

A statement of purpose grants a corporation power to engage in certain business activities.

Accepted Answer

A) True 
 B)False

Question 4

[Horse Tracks] Min-ji, Marcus, and Penelope decided to form a corporation called Horse Tracks to raise horses. They all began the incorporation process by arranging for necessary capital and financing. They raised capital from their friends by making deals whereby their friends would purchase stock in the new corporation. After the corporation was formed, a problem arose with a contract for feed that Min-ji, Marcus, and Penelope had entered into while organizing the corporation. Callie, the seller of the feed, claimed that she had not been fully paid and threatened to sue the corporation. The contract Min-ji, Marcus, and Penelope had with Callie did not reference liability after the new corporation came into legal existence. Min-ji, Marcus, and Penelope asked for a novation, but were uncertain as to whether that would occur.
-The contracts Min-ji, Marcus, and Penelope made with their friends to buy stock are known by what term?

Accepted Answer

A)   Promotion agreements
B)   Capital agreements
C)   Subscription agreements
D)   Novation agreements
E)   Acceptor agreementsF) A) and B)
G) C) and E)

Question 5

Corporations are considered to be legal persons.

Accepted Answer

A) True 
 B)False

Question 6

Corporations have many express powers. Which of the following would not be an express power of a corporation?

Accepted Answer

A)   Perpetual existence.
B)   Power to sue and be sued in the corporations' name.
C)   Power to buy and sell property.
D)   Power to eliminate double taxation.
E)   Powers to make contracts and borrow money.F) A) and B)
G) C) and D)

Question 7

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

Question 8

Regarding promoters, which of the following is false?

Accepted Answer

A)   Promoters prepare the corporation's incorporation papers.
B)   Promoters raise capital for the infant corporation.
C)   Promoters can purchase buildings for the corporation.
D)   Promoters are agents for the company being formed.
E)   A promoter may insert a clause into a contract with a supplier stating that the corporation's adoption of the contract terminates the liability of the promoter.F) A) and E)
G) A) and B) D

Question 9

Under United States laws, corporations are legal entities and do not exit separately from their shareholders.

Accepted Answer

A) True 
 B)False

Question 10

[Horse Tracks] Min-ji, Marcus, and Penelope decided to form a corporation called Horse Tracks to raise horses. They all began the incorporation process by arranging for necessary capital and financing. They raised capital from their friends by making deals whereby their friends would purchase stock in the new corporation. After the corporation was formed, a problem arose with a contract for feed that Min-ji, Marcus, and Penelope had entered into while organizing the corporation. Callie, the seller of the feed, claimed that she had not been fully paid and threatened to sue the corporation. The contract Min-ji, Marcus, and Penelope had with Callie did not reference liability after the new corporation came into legal existence. Min-ji, Marcus, and Penelope asked for a novation, but were uncertain as to whether that would occur.
-The friends who agreed to buy stock are known by what term?

Accepted Answer

A)   Promoters
B)   Subscribers
C)   Novators
D)   Subscriptioners
E)   AcceptorsF) C) and D)
G) A) and E)

Question 11

A promoter can enter into contracts as needed for the corporation.

Accepted Answer

A) True 
 B)False  True

Question 12

Shareholders adopt a set of corporate bylaws which do what for the corporation?

Accepted Answer

A)   Govern how directors should invest dividends
B)   Govern the corporations internal management
C)   Determine when a corporation should dissolve due to lack of profit
D)   Determine how stock options should be paid
E)   Determine who can be part of the corporate structureF) C) and D)
G) B) and E)

Question 13

________ occurs when both a corporation pays taxes on dividends and shareholders pay taxes on dividends receive.

Accepted Answer

A)   Shared liability
B)   Double taxation
C)   Corporate penalty taxation
D)   Dual taxation
E)   IRS taxation rule of corporate existanceF) C) and E)
G) C) and D)

Question 14

Which of the following is false regarding the question presented in the Case Opener regarding Facebook's status as a corporation?

Accepted Answer

A)   Its corporate status allows it to sue and be sued.
B)   Its corporate status allows it to enjoy existence for up to 100 years.
C)   Its corporate status allows it to acquire property.
D)   Its corporate status allows it to make contracts.
E)   Its corporate status allows it to make charitable donations.F) A) and B)
G) B) and C)

Question 15

In the corporate formation process, which of the following provides basic information about the corporation?

Accepted Answer

A)   The articles of subscription
B)   The agreement to promote
C)   The agreement to subscribe
D)   The agreement to incorporate
E)   The articles of incorporationF) B) and D)
G) A) and D) E

Question 16

If over 50% of the shareholders die, a corporation must be dissolved.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding corporate structure in Germany?

Accepted Answer

A)   Germany has three tiers of corporate power with the board at the lowest tier, management on the second tier, and the supervisory board on the top tier.
B)   Germany has three tiers of corporate power with the board at the lowest tier, the supervisory board on the second tier, and management on the top tier.
C)   Germany has three tiers of corporate power with management at the lowest tier, the board on the second tier, and the supervisory board on the top tier.
D)   Germany has three tiers of corporate power with management at the lowest tier, the supervisory board on the second tier, and the board on the top tier.
E)   Germany has three tiers of corporate power with the supervisory board at the lowest tier, management on the second tier, and the board on the top tier.F) None of the above
G) B) and D)

Question 18

What is the difference between a promoter and a subscriber?

Accepted Answer

Two groups of important players are resp...

Question 19

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

Accepted Answer

A)   Unsecured
B)   Secured
C)   Equity
D)   Convertible
E)   IncomeF) None of the above
G) A) and E)

Question 20

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

Accepted Answer

A)   Unsecured
B)   Secured
C)   Equity
D)   Convertible
E)   IncomeF) B) and D)
G) A) and D)

Exam 38: Corporations: Formation and Financing

Regarding Société Anonymes (SA) companies in France,

Correct Answer
verified

Discuss the rights of corporations, if any, to due process. Also discuss whether corporations have protection with regard to the Fourth Amendment, and in what manner.

Correct Answer
verified
Courts have ruled that corporations are ...
View Answer

A statement of purpose grants a corporation power to engage in certain business activities.

Correct Answer
verified

Correct Answer
verified

Corporations are considered to be legal persons.

Correct Answer
verified

Corporations have many express powers. Which of the following would not be an express power of a corporation?

Correct Answer
verified

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

Regarding promoters, which of the following is false?

Correct Answer
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D

Under United States laws, corporations are legal entities and do not exit separately from their shareholders.

Correct Answer
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Correct Answer
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A promoter can enter into contracts as needed for the corporation.

Correct Answer
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True

Shareholders adopt a set of corporate bylaws which do what for the corporation?

Correct Answer
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________ occurs when both a corporation pays taxes on dividends and shareholders pay taxes on dividends receive.

Correct Answer
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Which of the following is false regarding the question presented in the Case Opener regarding Facebook's status as a corporation?

Correct Answer
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In the corporate formation process, which of the following provides basic information about the corporation?

Correct Answer
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E

If over 50% of the shareholders die, a corporation must be dissolved.

Correct Answer
verified

Which of the following is true regarding corporate structure in Germany?

Correct Answer
verified

What is the difference between a promoter and a subscriber?

Correct Answer
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Two groups of important players are resp...
View Answer

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

Correct Answer
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A bond in which no assets support the corporations' obligation to repay the face value of the bond is called a(n) ________ bond?

Correct Answer
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Exam 38: Corporations: Formation and Financing

Regarding Société Anonymes (SA) companies in France,

Correct AnswerverifiedShow Answer

Discuss the rights of corporations, if any, to due process. Also discuss whether corporations have protection with regard to the Fourth Amendment, and in what manner.

Correct AnswerverifiedCourts have ruled that corporations are ...View AnswerShow Answer

A statement of purpose grants a corporation power to engage in certain business activities.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Corporations are considered to be legal persons.

Correct AnswerverifiedShow Answer

Corporations have many express powers. Which of the following would not be an express power of a corporation?

Correct AnswerverifiedShow 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

Regarding promoters, which of the following is false?

Correct AnswerverifiedD

Under United States laws, corporations are legal entities and do not exit separately from their shareholders.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A promoter can enter into contracts as needed for the corporation.

Correct AnswerverifiedTrue

Shareholders adopt a set of corporate bylaws which do what for the corporation?

Correct AnswerverifiedShow Answer

________ occurs when both a corporation pays taxes on dividends and shareholders pay taxes on dividends receive.

Correct AnswerverifiedShow Answer

Which of the following is false regarding the question presented in the Case Opener regarding Facebook's status as a corporation?

Correct AnswerverifiedShow Answer

In the corporate formation process, which of the following provides basic information about the corporation?

Correct AnswerverifiedE

If over 50% of the shareholders die, a corporation must be dissolved.

Correct AnswerverifiedShow Answer

Which of the following is true regarding corporate structure in Germany?

Correct AnswerverifiedShow Answer

What is the difference between a promoter and a subscriber?

Correct AnswerverifiedTwo groups of important players are resp...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Courts have ruled that corporations are ...
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D

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True

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E

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Two groups of important players are resp...
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