The Law of Corporations and Other Business Organizations

Chapter Review Questions

1. What are some of the factors that must be
taken into account when determining if a
corporation is the best type of business
organization for a particular business?

2. Discuss some of the factors that should
be considered when determining where to
incorporate a business. Why are those
factors important?

3. Under what circumstances are corporations
bound to contracts made by the
promoter prior to incorporation?

4. Can two individuals from New York
form a Florida corporation?

5. If two residents of Texas file articles of
incorporation in New York and transact
the majority of their business in Florida,
what is their state of domicile?

6. In addition to filing articles of incorporation,
what incorporation formalities are
imposed by some states before the incorporation
process is complete?

7. Can the incorporator also be a director of
a corporation?

8. What required provisions must be included
in the articles of incorporation in a
state following the Model Business Corporation
Act?

9. Why might it be preferable to put information
in the bylaws, as opposed to the
articles of incorporation, when the statute
provides that the information could be in
either document?

10. Would the name “Johnson Brothers Furniture
Store” be a valid corporate name in
a state following the Model Business
Corporation Act?

Why or why not?