True/False
Indicate whether the
statement is true or false.
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1.
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In most states, it is the secretary of state's
office that is responsible for maintaining records for corporations.
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2.
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When the corporation is small, the best choice
about where to locate it is near the secretary of state's office.
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3.
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Incorporators can be anyone, including other
corporations and minors.
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4.
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A de facto corporation is one that has fulfilled
all statutory requirements to become a corporation.
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5.
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A corporation can be formed for any purpose, even
one of questionable or outright illegality.
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6.
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The state secretary of state's office is
responsible for maintaining records of corporations licensed to do business in the
state.
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7.
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A promoter is the same thing as a corporate
officer.
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8.
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Articles of incorporation routinely set out the
details about how the corporation will be run.
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9.
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Shares indicate ownership in the
corporation.
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10.
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The purpose of the organizational, or initial,
meeting is to meet with representatives of the secretary of state's office.
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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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The statutorily required, first meeting of a newly
formed corporation where directors are elected and shares are issued.
a. | Initial meeting | b. | Statutory hearing | c. | Preliminary
hearing | d. | Official meeting |
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12.
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Rules adopted by a business entity to regulate its
internal policies and actions.
a. | Articles of delegation | b. | Corporate bylaws | c. | Seminal
statutes | d. | None of the above |
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13.
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An agreement between the members of a corporation
setting out issues such as who can own shares and how these shares affect rights within the
corporation.
a. | Corporate directives | b. | Directors' bylaws | c. | Shareholder
agreements | d. | All of the
above |
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14.
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A type of corporation that has not met all of the
requirements set out by state statute but operates as though it has. Courts may grant it temporary
status as a corporation.
a. | De facto corporation | b. | Quid pro quo corporation | c. | Elementary
corporation | d. | Du jour
corporation |
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15.
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Which of the following would be considered a
corporation formed for an illegal purpose?
a. | To acquire the assets of other
corporations | b. | To circumvent FDA
regulations by importing prescription drugs from
Canada | c. | To lobby Congress to change unfavorable laws | d. | All of the above |
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16.
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The general term that refers to all of the
documentation that creates a corporation.
a. | Corporate bylaws | b. | Corporate minutes | c. | Corporate
execution | d. | Corporate charter |
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17.
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An agreement entered into among the persons who
will form a corporation, including how and when the corporation will be formed and the
responsibilities for the various parties.
a. | Initiation agreement | b. | Purloined agreement | c. | Statutory
agreement | d. | Preincorporation
agreement |
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18.
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The person or persons who take responsibility for
creating and organizing a business into a corporation.
a. | Promoter | b. | Initiator | c. | Marketer | d. | Manager |
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19.
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The document that frames the creation,
organization, day-to-day operation, sale of assets, identity of registered agent, and dissolution of
a corporation.
a. | Preincorporation agreement | b. | Corporate bylaws | c. | Articles of
incorporation | d. | None of the
above |
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20.
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The person or persons who forms the
corporation.
a. | Incorporators | b. | Auctioneers | c. | Secretaries | d. | Pundits |
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