CHAPTER 34—NATURE OF A CORPORATION Key
1. A(n) _____ corporation is one that is formed to carry out some governmental function.
2. A stock corporation is an example of a _____ corporation.
3. Which of the following is true of a close corporation?
4. A corporation that is incorporated in another country is known as a(n) _____.
5. A person who takes the initial steps to form a corporation is known as a(n) _____.
6. Of the following people, who would be considered a subscriber?
7. Which of the following is an incidental power of a corporation?
8. Which of the following best describes bylaws?
9. A private corporation is one formed to carry out some governmental function.
10. A not-for-profit corporation is one formed by private individuals for some charitable purpose.
11. Certificates called shares of stock represent ownership in a stock corporation.
12. If incorporated in another country, a corporation may be referred to as a foreign corporation.
13. A corporation can be organized in any state the promoter chooses.
14. After it is incorporated, a corporation cannot disapprove of the contracts made by the promoter.
15. A written agreement to buy a corporation’s stock made in advance of the actual incorporation is known as a
subscription agreement.
16. The people who form a corporation are known as subscribers.
17. The power to make bylaws and regulations is an incidental power that a corporation possesses.
18. A corporation does not have the right to hold property under its own name.
19. Any contract entered into by a corporation that goes beyond its powers is called an ultra vires contract.
20. What are the three types of powers every corporation has? Explain