True/False
Indicate whether the
statement is true or false.
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1.
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Corporations are artificial persons.
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2.
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Once formed, a corporation has perpetual
existence.
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3.
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U.S. v. The Standard Oil Company was a
defining moment in the law of monopolies in the United States
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4.
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Shareholders are responsible for the day-to-day
operations of a corporation.
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5.
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Boards of directors create policy and hire officers
to run a corporation.
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6.
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Corporations can sue and be sued.
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7.
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The Federal Corporations Bureau now regulates all
national corporations and investigates potential monopolies.
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8.
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Public corporations are often formed to carry out
some governmental purpose.
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9.
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Closely held corporations are always nonprofit
corporations.
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10.
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Sub-Chapter S corporations allow the business to
pass through losses to individual shareholders.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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11.
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A person who owns shares in a
corporation.
a. | Member | b. | Shareholder | c. | Officer | d. | Manager |
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12.
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An individual hired or selected by a board of
directors who has specific authority, such as the ability to bind the corporation to contracts and
other agreements.
a. | Officer | b. | Manager | c. | Selector | d. | Guardian |
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13.
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Individuals who set policy and long-term goals for
corporations.
a. | Officers | b. | Managers | c. | Trustees | d. | Directors |
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14.
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Each of the following are elements of a legally
valid corporation except:
a. | They exist perpetually | b. | They can sue or be sued | c. | They can acquire
and hold property in its own right | d. | All of the above
are elements of a legally valid corporation |
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15.
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The document that frames the creation,
organization, day-to-day operation, sale of assets, and dissolution of a corporation.
a. | Articles of Formation | b. | Articles of Bylaws | c. | Articles of
Organization | d. | Articles of
Incorporation |
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16.
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A company’s absolute, or near absolute
control, over an industry or business area.
a. | Share | b. | Domination | c. | Accession | d. | Monopoly |
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17.
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One of the first federal legislative attempts to
regulate the power of corporations in the United States.
a. | Land Act of 1787 | b. | Anti-Corporate Act | c. | Sherman Antitrust
Act | d. | None of the above |
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18.
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The seminal case that determined the power of the
federal government to regulate national corporations.
a. | Gideon v. Wainwright | b. | Miranda v. Arizona | c. | Plessy v.
Ferguson | d. | U.S. v. The
Standard Oil Co. |
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19.
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A corporation formed to carry out some function or
service traditionally associated with state or federal government.
a. | Public corporation | b. | Private corporation | c. | Closely held
corporation | d. | Section 9
corporation |
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20.
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A company that was originally created as a private
corporation but after taking on a governmental function has been reclassified.
a. | Quasi-public corporation | b. | Nonprofit corporation | c. | Chapter A
corporation | d. | None of the
above |
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