BUL 5810 – CORPORATIONS EXAM
QUESTIONS AND ANSWERS 100%
PASS
Which of the following is NOT a characteristic of the corporate form of doing business?
- ✔✔Informal organization
All of the following are characteristics of a corporation EXCEPT:
a. it has perpetual existence.
b. it is a legal entity of its own.
c. it is able to be sued and to sue.
d. it is usually managed by its owners. - ✔✔It is usually managed by its owners
A corporation is considered a citizen: - ✔✔of the state in both
(1) where it has a principal office
(2) its incorporation
Which of the following is correct regarding a foreign corporation?
a. A foreign corporation is incorporated in a foreign country.
b. Failure to obtain a certificate of authority to transact business in the state impairs the
validity of a contract entered into by the corporation.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
, c. A foreign corporation transacting business within a particular state without having
first qualified cannot use the state court to maintain a lawsuit until the corporation
obtains a certificate of authority. - ✔✔A foreign corporation transacting business within
a particular state without having first qualified cannot use the state court to maintain a
lawsuit until the corporation obtains a certificate of authority
A promoter of a corporation has a fiduciary duty to: - ✔✔any other promoters of that
corporation
The possible consequences of a defective incorporation include all of the following
except:
a. the state may bring an action against the association for involuntary dissolution.
b. the association always being liable for an obligation.
c. the associates are held personally liable to a third party.
d. a third party asserts it is not liable to the association. - ✔✔the association always
being liable for an obligation
Which of the following is the basic governing document of a corporation? - ✔✔Articles
of Incorporation
The incorporators would typically do which of the following?
a. Purchase outstanding shares.
b. Assemble the assets.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100%
PASS
Which of the following is NOT a characteristic of the corporate form of doing business?
- ✔✔Informal organization
All of the following are characteristics of a corporation EXCEPT:
a. it has perpetual existence.
b. it is a legal entity of its own.
c. it is able to be sued and to sue.
d. it is usually managed by its owners. - ✔✔It is usually managed by its owners
A corporation is considered a citizen: - ✔✔of the state in both
(1) where it has a principal office
(2) its incorporation
Which of the following is correct regarding a foreign corporation?
a. A foreign corporation is incorporated in a foreign country.
b. Failure to obtain a certificate of authority to transact business in the state impairs the
validity of a contract entered into by the corporation.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
, c. A foreign corporation transacting business within a particular state without having
first qualified cannot use the state court to maintain a lawsuit until the corporation
obtains a certificate of authority. - ✔✔A foreign corporation transacting business within
a particular state without having first qualified cannot use the state court to maintain a
lawsuit until the corporation obtains a certificate of authority
A promoter of a corporation has a fiduciary duty to: - ✔✔any other promoters of that
corporation
The possible consequences of a defective incorporation include all of the following
except:
a. the state may bring an action against the association for involuntary dissolution.
b. the association always being liable for an obligation.
c. the associates are held personally liable to a third party.
d. a third party asserts it is not liable to the association. - ✔✔the association always
being liable for an obligation
Which of the following is the basic governing document of a corporation? - ✔✔Articles
of Incorporation
The incorporators would typically do which of the following?
a. Purchase outstanding shares.
b. Assemble the assets.
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
