QUESTION

A corporation that has been properly formed is called a(n):

a) de facto corporation.

b) ultra vires corporation.

c) subchapter s corporation.

d) de jure corporation.

QUESTION

If a corporation is unable to pay all of its debts, its shareholders:

a) have limited liability and are not legally responsible for the unpaid debts of the corporation.

b) are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation.

c) are personally responsible for all of the unpaid debts of the corporation.

d)are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation.