A corporation is an artificial person that is created by governmental action.

Question 1 options:

False

True

Question 2(0.25 points)

The shares of a close corporation are always held by a single individual.

Question 2 options:

True

False

Question 3(0.25 points)

For the purpose of determining the right to bring a lawsuit in federal court, a corporation is a citizen of any state in which it has been incorporated and of the state where it has its principal place of business.

Question 3 options:

True

False

Question 4(0.25 points)

Subject to constitutional limitations, corporations may be regulated by state statutes.

Question 4 options:

True

False

Question 5(0.25 points)

Subchapter S corporations have the benefits of limited liability as in partnerships and are taxed as corporations.

Question 5 options:

True

False

Question 6(0.25 points)

A corporation may properly exist without a name.

Question 6 options:

False

True

Question 7(0.25 points)

If a corporation assumes a contract made by a promoter with knowledge that the promoter had fraudulently induced the other party to enter into the contract, the corporation is liable to such other party for the fraud of the promoter.

Question 7 options:

True

False

Question 8(0.25 points)

A California corporation is a foreign corporation with respect to the remaining forty-nine (49) states of the United States.

Question 8 options:

True

False

Question 9(0.25 points)

Because nonprofit corporations have a more restricted range of powers than business corporations, actions not authorized by the charters of nonprofit corporations are more likely to be found ultra vires.

Question 9 options:

False

True

Question 10(0.25 points)

Most states have a general corporation code, and anyone who satisfies code requirements and files the necessary papers with the government may automatically become a corporation.

Question 10 options:

True

False

Question 11(0.25 points)

A corporation may exercise its power to borrow money by issuing bonds.

Question 11 options:

True

False

Question 12(0.25 points)

A corporate seal is required in order for the corporation to enter into a binding contract.

Question 12 options:

True

False

Question 13(0.25 points)

A corporation may be an incorporator of another corporation.

Question 13 options:

True

False

Question 14(0.25 points)

Under the Revised Model Business Corporation Act (RMBCA), corporate existence begins when the articles of incorporation are filed with the secretary of state.

Question 14 options:

False

True

Question 15(0.25 points)

If two firms consolidate, the new corporation usually succeeds to the rights, powers and immunities of its component parts.

Question 15 options:

True

False

Question 16(0.25 points)

A business corporation may legally merge with a charitable corporation.

Question 16 options:

True

False

Question 17(0.25 points)

A merger is subject to antitrust law, while a consolidation is not.

Question 17 options:

False

True

Question 18(0.25 points)

Saved

A corporation may be judicially dissolved when its management is deadlocked and the deadlock cannot be broken by the shareholders.

Question 18 options:

False

True

Question 19(0.25 points)

A holder of a single share of stock who objects to a merger has the power to stop the merger.

Question 19 options:

True

False

Question 20(0.25 points)

In a merger, the surviving corporation has all the rights and property of the corporation with which it merged, but none of the debts and liabilities.

Question 20 options:

True

False