Ch34 Nature of a Corporation Flashcards Preview

Business Law > Ch34 Nature of a Corporation > Flashcards

Flashcards in Ch34 Nature of a Corporation Deck (44)
Loading flashcards...
1
Q

These three words represent ownership in a stock corporation.

A

Share of Stock

2
Q

This word means “as if.”

A

Quasi

3
Q

These are documents set forth the facts prescribed by law for issuance of a certificate of incorporation or a charter and asserting that the corporation has complied with legal requirements.

A

Articles of Incorporation

4
Q

This person has many duties that they can do on behalf of the corporation, such as making contracts on behalf of the corporation.

A

Promoter

5
Q

These type of corporations are organized for profit and constitute the chief type.

A

Stock

6
Q

A corporation has how many types of powers?

A

Three

7
Q

These rules are adopted by the board of directors.

A

Bylaws

8
Q

This type of corporation is formed to carry out some governmental function.

A

Public

9
Q

A subscriber may offer to buy stock when a corporation is about to be formed. However, the offer may be ___________ any time prior to the acceptance.

A

Revoked

10
Q

A corporation can be organized in _________ state the promoter chooses.

A

Any

11
Q

The corporation’s articles of incorporation determine what type of powers?

A

Express

12
Q

These have become a widely used form of business organizations.

A

Corporations

13
Q

The power and function of these corporations may be much _________ than those of private corporations.

A

Greater

14
Q

This type of corporation is incorporated in another country.

A

Alien

15
Q

This type of corporation is usually managed by a small number of people and a small number of stockholders.

A

S Corporation

16
Q

Cengage Learning: One chartered in another country.

A

Alien Corporation

17
Q

Cengage Learning: Document stating facts about corporation required by law.

A

Articles of Incorporation

18
Q

Cengage Learning: Rules enacted by directors to govern corporation’s conduct.

A

Bylaws

19
Q

Cengage Learning: One with very small number of shareholders.

A

Close or Closely Held Corporation

20
Q

Cengage Learning: One chartered in the state

A

Domestic Corporation

21
Q

Cengage Learning: One chartered in another state

A

Foreign Corporation

22
Q

Cengage Learning: People initially forming a corporation

A

Incorporators

23
Q

Cengage Learning: One formed by private individuals for charitable, educational, religious, social, or fraternal purpose

A

Not–for–Profit Corporation

24
Q

Cengage Learning: One formed to do Nongovernmental function

A

Private Corporation

25
Q

Cengage Learning: One organized to run a business and earn money

A

Profit Corporation

26
Q

Cengage Learning: One who takes initial steps to form corporation

A

Promoter

27
Q

Cengage Learning: One formed for governmental function

A

Public Corporation

28
Q

Cengage Learning: Public body with powers similar to corporations

A

Quasi Public Corporation

29
Q

Cengage Learning: One in which ownership is represented by stock.

A

Stock Corporation

30
Q

Cengage Learning: One who agrees to buy stock in proposed corporation.

A

Subscriber

31
Q

Cengage Learning: Written agreement to buy stock

A

Subscription Agreement

32
Q

Cengage Learning: Contract exceeding corporation’s powers.

A

Ultra Vires Contract

33
Q
  1. A public corporation is one that is traded publicly on the New York Stock Exchange.
A

False

34
Q
  1. All corporations must file with the Securities and Exchange Commission.
A

False

35
Q
  1. A corporation must be bound by all the contracts made by the promoter.
A

False

36
Q
  1. A foreign corporation would be a company that was chartered in Arizona but did business in Colorado, New Mexico, and Utah.
A

True

37
Q
  1. Similar to a partnership, a corporation need not have a corporate name.
A

False

38
Q
  1. A corporation has a right to exist continually for the length of time stated in the state charter or until dissolved.
A

True

39
Q
  1. Corporations need to use a corporate seal when executing written instruments that require the use of a seal when executed by natural individuals.
A

True

40
Q
  1. What three types of powers does a corporation have?
A

express, incidental, and implied

41
Q
  1. A public body that is not a true corporation but has powers similar to a corporation is called a/n ________ corporation.
A

Quasi

42
Q
  1. A contract entered into by a corporation that goes beyond its powers is a/n ________ contract.
A

Ultra Vires

43
Q
  1. Rules enacted by the board of directors to govern the conduct of the corporation are the ________.
A

Bylaws

44
Q
  1. A corporation with a very small number of shareholders is a ________ corporation.
A

Close