10 points A corporation is a legal entity Independent of its owners. True False 10 points It is possible to create a corporation without a government's permission True False 10 points The directors and ofcers of a corporation need to be its shareholders. True False 10 points Which of the following corporation classes' prots are taxed only at the shareholder level? An S corporation Forprot corporation Notforprot corporation Publicly held corporation 10 points In which of the following classes of corporation are the controlling shareholders the only managers of the business? Forprot corporation Close corporation Notforprot corporation Publicly held corporation n 10 points Corporations are generally liable on preincorporation contracts signed by their promoters. True False 10 points A corporation is required to reimburse a promoter for his reasonable expenses incurred on behalf of the corporation prior to incorporation. True False n 10 points In order to capitalize a newly formed corporation, the company will usually seek cash in exchange for equity securities, debt securities, or both. True False n 10 points 5? Rice is a promoter of a corporation to be known as Dex Corp. On January 1, 1935, Rice signed a ninemonth contract with Roe, a CPA, which provided that Roe would perform certain accounting senrices for Dex. Rice did notdisclose to Roe that Dex had not been formed. Prior to the incorporation of De): on February 1. 1985, Roe rendered accounting services pursuant to the contract. Alter rendering accounting services for an additional period of six months pursuant to the contract, Roe was discharged w'rthout cause by the board of directors of Dex. In the absence of any agreements to the contrary, who will be liable to Roe for breach of contract? Both Rice and Dex Rice only Neither Rice nor Dex Dex only 10 points 9 The basic governing document of the corporation is the: articles of incorporation. bylaws shareholder agreement. organizational operating agreement