An implied power differs from an express power in that the implied power:

Question 1 options:

	is granted to a corporation through statute and its articles of incorporation.
	is a power with limitations.
	is beyond a corporate power that is explicitly established.
	is a power that relates to the external environment of a corporation.
	is a power that relates to the internal environment of a corporation.

What is a shareholder quorum?

Question 2 options:

	It is the rights of shareholders to protect dilution of their percentage of share ownership.
	It is a lawsuit brought on behalf of the corporation by a shareholder when the directors refuse to act.
	It is an agreement made in advance among shareholders to vote in a particular manner.
	It is a method whereby a shareholder elects a representative, commonly another individual or a written document, through which the shareholder casts his vote at the annual meeting.
	It is the minimum number of shareholders needed to have a valid vote.

What is a preemptive right?

Question 3 options:

	It is the right of shareholders to protect dilution of their percentage of share ownership.
	It is the right of shareholders to distribute their total votes in any manner they choose-all for one candidate or several shares for different candidates.
	It is the right of shareholders to create a trust and elect a commissioner for the trust.
	It is the right of shareholders to make an advance voting agreement among them to vote in a specific manner.
	It is the right of shareholders to elect a representative, commonly another individual or a written document, through which they can cast their votes at the annual meeting.

A corporate veil could be pierced in which of the following circumstances?

Question 4 options:

	When the publicly held corporation provides free transferability of shares.
	When the corporation does not act as if it were one.
	When the corporate acts like a closely held corporation.
	When the corporation fails to have more than 100 shareholders.
	When a corporation does not have a single uniform class of stock.

Which of the following is true of a closely held corporation?

Question 5 options:

	It is a governmental organization.
	The stock in a closely held corporation is widely held.
	The shareholders in a closely held corporation are fewer in number.
	It is often called a municipal corporation.
	It is a corporation not organized for profit.

A municipal corporation:

Question 6 options:

	has more than 100 shareholders.
	is not organized for profit.
	has atleast a minimum of seven shareholders.
	operates under the statues of S corporations.
	is also known as a publicly held corporation.

_____ are individuals who take the steps necessary to form the corporation, and they often will receive stock in exchange for their efforts.

Question 7 options:

	Promoters
	Bondholders
	Zero coupon bondholders
	Stockholders
	Scienters

What is a dividend?

Question 8 options:

	It is the term that describes the sum of the par value of the issued par value stock and the consideration received for the no-par stock.
	It is an inflated consideration that is in fact less than the par value of a stock.
	It is the first time a corporation offers stock for sale to the public.
	It is a share of the corporation's profits.
	It is the face value of a stock.

Question 9 (2 points)

The term _____ describes the sum of the par value of the issued par value stock and the consideration received (or stated value) for the no-par stock.

Question 9 options:

	stated capital
	venture capital
	preference capital
	bond capital
	authorized capital

Question 10 (2 points)

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Stuart wanted to set up a small steel manufacturing plant. In order to raise funds, he approached his affluent uncle, Tom. Tom agreed to finance the plant with his own money in exchange for an ownership with interest. It can be said that Tom is a(n) _____.

Question 10 options:

	venture capitalist
	stockholder
	bondholder
	equity shareholder