BLAW 301 Exam 3
A major violation of the legal process, but still hold yourself as a corporation.
Shareholders are not liable. - ✔️✔️Corporation by Estopel
____________________ fired their president and the state government in New
Hampshire came in a took over the school. The issue went to the Supreme Court and
the court ruled that ___________________ was a corporation because it was created
by a charter. - ✔️✔️Dartmouth College
____________ are creatures of state law - not formed at the federal level. -
✔️✔️Corporations
(T/F) Corporations transcend International boundaries and are extremely old. -
✔️✔️True
(T/F) Corporations will outlive you; they don't go away when you die. - ✔️✔️True
(T/F) Corporations are entities that exist on their own - they are legal people. -
✔️✔️True
___________________________ are the owners of a corporation. - ✔️✔️Shareholders
_______________= ownership - ✔️✔️Stock
______________=Debt - ✔️✔️Bond
Corporations are residents of states in which they are _______________ in and the
states that they___________________. - ✔️✔️incorporated; do business in
Corporations are taxed via _________________. - ✔️✔️Double taxation
Made the federal flat rate tax of 21% for all corporations. - ✔️✔️Tax Cut and Jobs Act
(T/F) Dividends are not always declared. Corporate profits can be retained and
reinvested in the company, eliminating double taxation. - ✔️✔️True
Corporations that exist solely to own other corporations. - ✔️✔️Holding Companies
Corporations are responsible for the torts or wrongdoings of its employees under the
__________________. - ✔️✔️Doctrine of Respondeat Superior
, A corporation that is incorporated in a certain state and doing business in that state. -
✔️✔️domestic corporation
A corporation that is incorporated in State 'A' and doing business in State 'B', 'C', 'D' ,
etc. - ✔️✔️Foreign corporation
A corporation that is incorporated somewhere outside the US, but doing business in the
states. - ✔️✔️Alien Corporation
A corporation that is a for profit business that isn't traded on the stock exchange. -
✔️✔️Private corporation
A corporation created by the government to serve a certain need. (TVA, USPS) -
✔️✔️Public corporation
A corporation that is for profit and is publicly traded on the stock exchange. -
✔️✔️Publicly Held Corporation
Have small # of shareholders, often members of the same family. Managed more like a
partnership. - ✔️✔️Close Corporations
Close Corporation criteria... - ✔️✔️1. No public offering of stock
2. Between 30-35 shareholders
- Refers to sub-charter S in Interval Revenue Code
- Taxed as partnership
- Must be a domestic corporation
- Must be fewer than 100 shareholders - ✔️✔️S Corporation
_____________ is a popular state to form a corporation because of separate litigation
systems. - ✔️✔️Delaware
When you have a small, incidental mistake in your filing. - ✔️✔️De Jure Corporation
A corporation with a larger error in the formation process. - ✔️✔️De Facto Corporation
The action of a court to disregard the corporate entity and hold the shareholders
personally liable for corporate debts and obligations. - ✔️✔️Piercing the Corporate Veil
________________ only happens if the plaintiff in lawsuit asks a court to order it. -
✔️✔️PCV
A major violation of the legal process, but still hold yourself as a corporation.
Shareholders are not liable. - ✔️✔️Corporation by Estopel
____________________ fired their president and the state government in New
Hampshire came in a took over the school. The issue went to the Supreme Court and
the court ruled that ___________________ was a corporation because it was created
by a charter. - ✔️✔️Dartmouth College
____________ are creatures of state law - not formed at the federal level. -
✔️✔️Corporations
(T/F) Corporations transcend International boundaries and are extremely old. -
✔️✔️True
(T/F) Corporations will outlive you; they don't go away when you die. - ✔️✔️True
(T/F) Corporations are entities that exist on their own - they are legal people. -
✔️✔️True
___________________________ are the owners of a corporation. - ✔️✔️Shareholders
_______________= ownership - ✔️✔️Stock
______________=Debt - ✔️✔️Bond
Corporations are residents of states in which they are _______________ in and the
states that they___________________. - ✔️✔️incorporated; do business in
Corporations are taxed via _________________. - ✔️✔️Double taxation
Made the federal flat rate tax of 21% for all corporations. - ✔️✔️Tax Cut and Jobs Act
(T/F) Dividends are not always declared. Corporate profits can be retained and
reinvested in the company, eliminating double taxation. - ✔️✔️True
Corporations that exist solely to own other corporations. - ✔️✔️Holding Companies
Corporations are responsible for the torts or wrongdoings of its employees under the
__________________. - ✔️✔️Doctrine of Respondeat Superior
, A corporation that is incorporated in a certain state and doing business in that state. -
✔️✔️domestic corporation
A corporation that is incorporated in State 'A' and doing business in State 'B', 'C', 'D' ,
etc. - ✔️✔️Foreign corporation
A corporation that is incorporated somewhere outside the US, but doing business in the
states. - ✔️✔️Alien Corporation
A corporation that is a for profit business that isn't traded on the stock exchange. -
✔️✔️Private corporation
A corporation created by the government to serve a certain need. (TVA, USPS) -
✔️✔️Public corporation
A corporation that is for profit and is publicly traded on the stock exchange. -
✔️✔️Publicly Held Corporation
Have small # of shareholders, often members of the same family. Managed more like a
partnership. - ✔️✔️Close Corporations
Close Corporation criteria... - ✔️✔️1. No public offering of stock
2. Between 30-35 shareholders
- Refers to sub-charter S in Interval Revenue Code
- Taxed as partnership
- Must be a domestic corporation
- Must be fewer than 100 shareholders - ✔️✔️S Corporation
_____________ is a popular state to form a corporation because of separate litigation
systems. - ✔️✔️Delaware
When you have a small, incidental mistake in your filing. - ✔️✔️De Jure Corporation
A corporation with a larger error in the formation process. - ✔️✔️De Facto Corporation
The action of a court to disregard the corporate entity and hold the shareholders
personally liable for corporate debts and obligations. - ✔️✔️Piercing the Corporate Veil
________________ only happens if the plaintiff in lawsuit asks a court to order it. -
✔️✔️PCV
