117. The name and address of a corporation, the name and address of the corporation’s registered agent, and the
purpose of the business are all examples of things that are generally included in:
a. the articles of incorporation
b. the articles of sale
c. the articles of business
d. the articles of legitimacy
e. the articles of profit
118. The name and address of a corporation, the name and address of the corporation’s registered agent, and the
purpose of the business are all examples of things that are generally included in:
a. the articles of profit
b. the articles of sale
c. the articles of business
d. the articles of legitimacy
e. none of the other choices are correct
119. After reviewing a corporation’s application, the state issues a:
a. certificate of business
b. certificate of taxes
c. certificate of incorporation
d. certificate of institution
e. certificate of corporation
120. After reviewing a corporation’s application, the state issues a:
a. certificate of business
b. certificate of taxes
c. certificate of corporation
d. certificate of institution
e. none of the other choices are correct
121. Electing a board of directors, enacting the corporation‘s bylaws, and issuing the corporation‘s stock are all things
that occur:
a. after the state has issued the corporation’s certificate of incorporation
b. before the state has issued the corporation’s certificate of incorporation
c. before the state has issued the corporation’s articles of incorporation
d. before the application for a certificate of incorporation
e. these things can occur at anytime
122. Electing a board of directors, enacting the corporation‘s bylaws, and issuing the corporation‘s stock are all things
that occur:
a. these things can occur at anytime
b. before the state has issued the corporation’s certificate of incorporation
c. before the state has issued the corporation’s articles of incorporation
d. before the application for a certificate of incorporation
e. none of the other choices are correct
123. Which of the following occur after the state has issued a corporation its certificate of incorporation:
a. electing a board of directors
b. enacting the corporation’s bylaws
c. issuing the corporation’s stock
d. all of the other specific choices are correct
e. none of the other specific choices are correct
124. The rules that regulate and govern the internal operations of a corporation are known as:
a. the certificate of incorporation
b. the bond
c. the bylaws
d. statutes of business
e. the corporate constitution
125. The rules that regulate and govern the internal operations of a corporation are known as:
a. the certificate of incorporation
b. the bond
c. the corporate constitution
d. statutes of business
e. none of the other choices
126. The are the “rules” that regulate and govern the internal operations of the corporation.
a. the certificate of incorporation
b. the bond
c. the bylaws
d. statutes of business
e. the corporate constitution
127. The are the “rules” that regulate and govern the internal operations of the corporation.
a. the certificate of incorporation
b. the bond
c. the corporate constitution
d. statutes of business
e. none of the other choices are correct
128. Whom of the following must follow a corporation‘s bylaws in conducting corporate activities:
a. shareholders
b. directors
c. officer of the corporation
d. all of the other specific choices are correct
e. none of the other specific choices are correct
129. A reason the corporate status is often chosen is:
a. corporations have the status of a legal person
b. the Civil Rights Act of 1964 does not apply to corporations
c. shareholders have the right to instruct management
d. directors are immune from liability suits
e. none of the other choices are true
130. A corporation is recognized under both federal and state law as a “person“ and:
a. enjoys all of the same rights and privileges accorded to U.S. citizens in about half the states
b. enjoys some of the same rights and privileges accorded U.S. citizens
c. enjoys none of the same rights and privileges accorded to U.S. citizens
d. enjoys all of the same rights and privileges accorded to U.S. citizens
e. none of the other choices are correct
131. Which of the following statements about a corporation is true? Corporations are not entitled to constitutionally
protected:
a. free speech
b. equal protection
c. privileges against self-incrimination
d. freedom from unreasonable searches and seizures
e. none of the other choices are true
132. Which of the following statements about a corporation is true? Corporations are not entitled to:
a. free speech
b. equal protection
c. right of access to courts
d. freedom from unreasonable searches and seizures
e. none of the other choices are true
133. A close corporation is one:
a. with a pending application for incorporation
b. with stock that can only be traded with other corporations
c. that is in the process of dissolution
d. that has a small number of stockholders
e. that issues only preferred stock
134. A close corporation is one:
a. with a pending application for incorporation
b. with stock that can only be traded with other corporations
c. that is in the process of dissolution
d. that issues only preferred stock
e. none of the other choices
135. A is one whose shares are held by one shareholder or a small group of shareholders.
a. close corporation
b. small corporation
c. limited corporation
d. shared corporation
e. nonprofit corporation
136. A is one whose shares are held by one shareholder or a small group of shareholders.
a. nonprofit corporation
b. small corporation
c. limited corporation
d. shared corporation
e. none of the other choices are correct
137. A corporation in which the shares are held by one shareholder or a small group of shareholders and the stock is not
actively traded is a:
a. close corporation
b. small corporation
c. limited corporation
d. shared corporation
e. nonprofit corporation
138. A corporation in which the shares are held by one shareholder or a small group of shareholders and the stock is not
actively traded is a:
a. nonprofit corporation
b. small corporation
c. limited corporation
d. shared corporation
e. none of the other choices are correct
139. are those with stock traded on a stock exchange and, therefore, are likely to have many shareholders.
a. Publicly held corporations
b. Privately held corporations
c. Close corporations
d. Real corporations
e. Traded corporations
140. are those with stock traded on a stock exchange and, therefore, are likely to have many shareholders.
a. Traded corporations
b. Privately held corporations
c. Close corporations
d. Real corporations
e. none of the other choices are correct
141. In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had
been violated, the appeals court held that:
a. there was no fraud, the directors followed the rules, so he had no suit
b. while there was no fraud, the directors did not follow the bylaws properly, so the changes made to the
corporation would have to be reconsidered
c. the bylaws had been violated, so Samuels was due full fair market value of his shares
d. the directors violated their duty to the corporation so would be removed from control and Samuels would
take control of the company
e. none of the other choices
142. In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had
been violated, the appeals court held that:
a. the directors committed fraud and would be removed from the board and a new board would be elected
under court supervision
b. while there was no fraud, the directors did not follow the bylaws properly, so the changes made to the
corporation would have to be reconsidered
c. the bylaws had been violated, so Samuels was due full fair market value of his shares
d. the directors violated their duty to the corporation so would be removed from control and Samuels would
take control of the company
e. none of the other choices
143. In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had
been violated, the appeals court held that:
a. the bylaws had been violated because the Companies‘ bylaws did not clearly sanction the Board of Directors
to manage the business and affairs of the company
b. the bylaws had been violated because the Companies’ bylaws clearly sanctioned the Board of Directors to
manage the business and affairs of the company
c. the bylaws had not been violated because the Companies’ bylaws clearly sanctioned the Board of Directors
to manage the business and affairs of the company
d. the bylaws were never properly approved and so there was no case for violation of bylaws
e. none of the other choices are correct
144. In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had
been violated, the appeals court held that:
a. the bylaws had been violated because the Companies‘ bylaws did not clearly sanction the Board of Directors
to manage the business and affairs of the company
b. the bylaws had been violated because the Companies’ bylaws clearly sanctioned the Board of Directors to
manage the business and affairs of the company
c. the bylaws had not been violated because the Companies’ certificate of incorporation clearly sanctioned the
Board of Directors to manage the business and affairs of the company
d. the bylaws were never properly approved and so there was no case for violation of bylaws
e. none of the other choices are correct
145. A corporation consists of:
a. shareholders
b. board of directors
c. officers or managers
d. shareholders and board of directors
e. shareholders, board of directors, and officers or managers
146. A corporation consists of legally distinct groups, not including:
a. shareholders
b. stakeholders
c. directors
d. managers
e. all of the other choices are included
147. Shareholders, the board of directors and the managers are the three major groups that make up:
a. a limited partnership
b. a sole proprietorship
c. a joint partnership
d. a corporation
e. a nonprofit organization
148. Shareholders, the board of directors and the managers are the three major groups that make up:
a. a limited partnership
b. a sole proprietorship
c. a joint partnership
d. a nonprofit organization
e. none of the other choices are correct
149. The owners of a corporation are called:
a. partners
b. officers
c. shareholders
d. principals
e. none of the other choices
150. A corporation separates:
a. ownership from responsibility
b. ownership from profit
c. ownership from control
d. control from losses
e. control from profits
151. Shareholders of a corporation have:
a. no right to see the corporation’s books and records
b. limited rights to see the corporation’s books and records
c. no rights to see the corporation’s books and records in some states, but not others
d. limited rights to see the corporation’s books and records in some states, but not others
e. none of the other choices are correct
152. Shareholders of a corporation:
a. manage the corporation
b. delegate responsibility for management to hired managers
c. elect all vice presidents of the corporation
d. vote on matters that may effect a change in the corporation’s structure
e. issue the employment rules of a corporation
153. Legally, shareholders of a corporation must:
a. manage the corporation
b. delegate responsibility for management to hired managers
c. elect all vice presidents of the corporation
d. issue the employment rules of a corporation
e. none of the other choices
154. The shareholders of a corporation generally have the right(s) to:
a. instruct top management on corporate operations
b. hire managers of the corporation
c. give a third party the right to vote their shares by proxy
d. instruct top management on corporate operations and hire managers of the corporation
e. instruct top management on corporate operations and hire managers of the corporation and give a third party
the right to vote their shares by proxy
155. Most shareholders give third parties their
attend a shareholder meeting in person.
a. charter
b. shares
c. resolution
d. proxy
e. none of the other choices
. It is a written authorization to cast their vote so they do not have to
156. Most shareholders give third parties their
attend a shareholder meeting in person.
a. charter
b. shares
c. resolution
d. liens
e. none of the other choices
. It is a written authorization to cast their vote so they do not have to
157. The board of directors of a corporation are elected by:
a. top managers
b. shareholders
c. current board members
d. the president
e. all of the other choices have equal votes
158. The board of directors of a corporation are elected by:
a. top managers
b. the president
c. current board members
d. the president and current board members jointly
e. none of the other choices
159. To hold a shareholder meeting, which criteria must be met?
a. a quorum of shareholders must be represented
b. advance notice of the meeting must be given
c. a state representative must be in attendance
d. a quorum of shareholders must be represented and advance notice of the meeting must be given
e. all of the other choices
160. At a shareholder meeting, there must be:
a. a manager
b. at least three company employees
c. a quorum
d. at least 1/3 of the total shares present
e. none of the other choices are correct
161. At a shareholder meeting, important corporate business is presented to the shareholders in the form of
shareholders vote to approve or disapprove.
a. statements
b. resolutions
c. quorums
d. bylaws
e. contracts
162. At a shareholder meeting, important corporate business is presented to the shareholders in the form of
shareholders vote to approve or disapprove.
a. statements
b. contracts
c. quorums
d. bylaws
e. none of the other choices are correct
, which
, which
163. A shareholder’s relation to creditors of the corporation is generally that the shareholder:
a. is a secured creditor
b. is an unsecured creditor
c. has no relation to creditors
d. is a third-party beneficiary to creditors
e. none of the other choices
164. A shareholder’s relation to creditors of the corporation is generally that the shareholder:
a. is a secured creditor
b. is an unsecured creditor
c. holds a possessory lien
d. is a third-party beneficiary to creditors
e. none of the other choices
165. If a shareholder supplies needed material to the business then he:
a. will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation
as any other creditor
b. will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the
corporation as any other creditor
c. will be removed from the corporation
d. will be forced to sell his shares in the company
e. will become a creditor of the corporation, but will not enjoy the same rights of recovery against the
corporation as any other creditor
166. If a shareholder works for the business then he:
a. will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation
as any other creditor
b. will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the
corporation as any other creditor
c. will be removed from the corporation
d. will be forced to sell his shares in the company
e. will become a creditor of the corporation, but will not enjoy the same rights of recovery against the
corporation as any other creditor
167. If a shareholder supplies needed material to the business then he:
a. will become a creditor of the corporation, but will not enjoy the same rights of recovery against the
corporation as any other creditor
b. will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the
corporation as any other creditor
c. will be removed from the corporation
d. will be forced to sell his shares in the company
e. none of the other choices are correct
168. If a shareholder works for the business then he:
a. will become a creditor of the corporation, but will not enjoy the same rights of recovery against the
corporation as any other creditor
b. will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the
corporation as any other creditor
c. will be removed from the corporation
d. will be forced to sell his shares in the company
e. none of the other choices are correct
169. The governing committee of a corporation is the:
a. board of presidents
b. president
c. board of directors
d. board of shareholders
e. board of managers
170. The governing committee of a corporation is the:
a. board of presidents
b. president
c. board of managers
d. board of shareholders
e. none of the other choices are correct
171. Directors of a corporation may be:
a. removed for cause
b. reprimanded but not removed during term in office
c. liable for a breach of duty
d. reprimanded but not removed during term in office but held liable for breach of duty
e. removed for cause and be liable for a breach of duty
172. Legally, the board of directors is the of a corporation.
a. principle
b. leader
c. principal
d. judge
e. owner
173. Directors are under a to conduct themselves on behalf of the corporation as a reasonably prudent person in
the conduct of personal business affairs.
a. duty of reasonability
b. duty of care
c. duty of management
d. duty of morality
e. duty of profit