cheeseman_buslaw7_tif_36

cheeseman_buslaw7_tif_36 - 36 CORPORATEFORMATIONAND...

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1) Corporations are the most dominant form of business organization in the United States. Answer: TRUE Diff: 1 Topic: Nature of the Corporation 2) A corporation can sue or be sued in its own name. Answer: TRUE Diff: 1 Topic: Nature of the Corporation 3) A corporation cannot be established that has a fixed termination date. Answer: FALSE Diff: 2 Topic: Nature of the Corporation 4) Shareholders have unlimited liability that can exceed the extent of their capital contributions. Answer: FALSE Diff: 1 Topic: Nature of the Corporation 5) A corporation's existence is not affected by the death or insanity of a shareholder. Answer: TRUE Diff: 1 Topic: Nature of the Corporation 6) The concept of centralized management indicates that the management of the corporation is separated from the ownership of the corporation. Answer: TRUE Diff: 1 Topic: Nature of the Corporation 8 CORPORATE FORMATION AND  FINANCING 36
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7) Corporations exist in perpetuity unless a specific duration is stated in the corporation's articles of incorporation. Answer: TRUE Diff: 2 Topic: Nature of the Corporation 8) Shareholders are elected by the board of directors so that they can make policy decisions. Answer: FALSE Diff: 1 Topic: Nature of the Corporation 9) The Revised Model Business Corporation Act is a federal statute affecting corporations. Answer: FALSE Diff: 1 Topic: Revised Model Business Corporation Act (RMBCA) 10) The law governing the formation and operation of corporations is all at the state level. Answer: TRUE Diff: 1 Topic: Revised Model Business Corporation Act (RMBCA) 11) Park districts may be formed as corporations. Answer: TRUE Diff: 2 Topic: Classifications of Corporations 12) Most corporations are private. Answer: TRUE Diff: 1 Topic: Classifications of Corporations 13) A corporation formed for scientific purposes would be a profit corporation. Answer: FALSE Diff: 2 Topic: Classifications of Corporations 9
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14) A publicly held corporation is one that is owned by a few shareholders who are often family members, relatives, or friends. Answer: FALSE Diff: 2 Topic: Classifications of Corporations 15) Shareholders that are involved in the management of a corporation are most likely involved in a closely held corporation. Answer: TRUE Diff: 2 Topic: Classifications of Corporations 16) Professional corporations in some states do not provide limited liability with respect to the professional malpractice of other shareholders. Answer: TRUE Diff: 1 Topic: Classifications of Corporations 17) Nonprofit corporations can be formed only for certain purposes. Answer: TRUE Diff: 1 Topic: Classifications of Corporations 18) A state may require a foreign corporation to "qualify" in that state before the corporation may do business within that state. Answer:
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This note was uploaded on 12/13/2011 for the course LAW LAW taught by Professor Ricks during the Spring '09 term at Rutgers.

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cheeseman_buslaw7_tif_36 - 36 CORPORATEFORMATIONAND...

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