BADM 300: Chapter 19 Exam Questions with Correct Answers
Question 1:
The Nature and Classification of Corporations artificial "person"
Answer:
-A corporation is a creature of statute, an
Question 2:
-Corporations can have one or more shareholders, comprised of natural persons or other
businesses Corporation person:
-Access to court systems
Answer:
A corporation is a legal "person", enjoys the same rights and privileges as a natural
-Constitutional guarantees of free speech, due process, etc.
Question 3:
Corporate Personnel (elected by shareholders)
Answer:
-Responsibility for management of company rests with board of directors
Question 4:
-Board of directors make policy decisions and hires officers to run corporation on a daily basis
Corporate Personnel Cont.
Answer:
Shareholders can sue corporation and be sued by corporation and bring a derivative suit on
behalf of the corporation in some instances.
Question 5:
Limited Liability of Shareholders
Answer:
Generally, shareholders are not personally liable for corporate acts.
, Question 6:
Limited Liability of Shareholders Cont.
liability can be pierced, holding the shareholders personally liable.
-Party is misled into dealing with the corporation rather than an individual
-Too thinly capitalized-Corp formed to evade existing legal obligations-Statutory corporate
formalities are not followed
Answer:
But in certain situations, the corporate "veil" of limited-Personal and corporate interests are
mixed together and commingled to an extent that corporation has no separate identity-Too
thinly capitalized-Corp formed to evade existing legal obligations-Statutory corporate
formalities are not followed
But in certain situations, the corporate "veil" of limited-Personal and corporate interests are
mixed together and commingled to an extent that corporation has no separate identity
-Too thinly capitalized
-Corp formed to evade existing legal obligations
-Statutory corporate formalities are not followed
But in certain situations, the corporate "veil" of limited
-Personal and corporate interests are mixed together and commingled to an extent that
corporation has no separate identity
-Too thinly capitalized
-Corp formed to evade existing legal obligations
-Statutory corporate formalities are not followed
But in certain situations, the corporate "veil" of limited
-Personal and corporate interests are mixed together and commingled to an extent that
corporation has no separate identity
Question 7:
Corporate Earnings and Taxation
Answer:
Profits can either be kept as retained earnings or passed on to the shareholders as dividends.
Question 8:
Corporate Taxation
Answer:
Can be taxed twice, first to corporation, then to shareholders via dividends.
Question 9:
Torts
Answer:
Question 1:
The Nature and Classification of Corporations artificial "person"
Answer:
-A corporation is a creature of statute, an
Question 2:
-Corporations can have one or more shareholders, comprised of natural persons or other
businesses Corporation person:
-Access to court systems
Answer:
A corporation is a legal "person", enjoys the same rights and privileges as a natural
-Constitutional guarantees of free speech, due process, etc.
Question 3:
Corporate Personnel (elected by shareholders)
Answer:
-Responsibility for management of company rests with board of directors
Question 4:
-Board of directors make policy decisions and hires officers to run corporation on a daily basis
Corporate Personnel Cont.
Answer:
Shareholders can sue corporation and be sued by corporation and bring a derivative suit on
behalf of the corporation in some instances.
Question 5:
Limited Liability of Shareholders
Answer:
Generally, shareholders are not personally liable for corporate acts.
, Question 6:
Limited Liability of Shareholders Cont.
liability can be pierced, holding the shareholders personally liable.
-Party is misled into dealing with the corporation rather than an individual
-Too thinly capitalized-Corp formed to evade existing legal obligations-Statutory corporate
formalities are not followed
Answer:
But in certain situations, the corporate "veil" of limited-Personal and corporate interests are
mixed together and commingled to an extent that corporation has no separate identity-Too
thinly capitalized-Corp formed to evade existing legal obligations-Statutory corporate
formalities are not followed
But in certain situations, the corporate "veil" of limited-Personal and corporate interests are
mixed together and commingled to an extent that corporation has no separate identity
-Too thinly capitalized
-Corp formed to evade existing legal obligations
-Statutory corporate formalities are not followed
But in certain situations, the corporate "veil" of limited
-Personal and corporate interests are mixed together and commingled to an extent that
corporation has no separate identity
-Too thinly capitalized
-Corp formed to evade existing legal obligations
-Statutory corporate formalities are not followed
But in certain situations, the corporate "veil" of limited
-Personal and corporate interests are mixed together and commingled to an extent that
corporation has no separate identity
Question 7:
Corporate Earnings and Taxation
Answer:
Profits can either be kept as retained earnings or passed on to the shareholders as dividends.
Question 8:
Corporate Taxation
Answer:
Can be taxed twice, first to corporation, then to shareholders via dividends.
Question 9:
Torts
Answer:
