BUSINESS LAW CH 41 MALLOR BARNES BOWERS LANGVARDT 15TH EDITION EXAM QUESTIONS 2025

BUSINESS LAW CH 41 MALLOR BARNES BOWERS LANGVARDT 15TH EDITION EXAM QUESTIONS 2025
2026 WITH CORRECT ANSWERS RATED A+

1.sAsforeignscorporationsmustsincorporatesinseachsstatesinswhichsitsdoessintrastatesbusiness.s-
sCORRECTsANSWERSFalse




2.sThesCommercesClausesofsthesUnitedsStatessConstitutionsrestrictssthesabilitysofsasstatestosregulatesthesint
ernalsaffairssofsasforeignscorporation.s-sCORRECTsANSWERSTrue

3.sAscorporationswithsonespersonswhosissthesonlysshareholder,sofficer,sandsdirectorswillshavesitsscorporates
veilspierced,smakingsthatspersonspersonallysliablesforsallsthesobligationssofsthesdominatedscorporation.s-
sCORRECTsANSWERSFalse




4.sInsorderstospiercesthescorporatesveil,sascreditorsneedsstosshowsthatseachsshareholdersdoessnotsactivelysp
articipatesinsthesmanagementsofsthescorporation.s-sCORRECTsANSWERSFalse

5.sAscorporationswithsasreasonablesdebt-to-
equitysratioswillsnotshavesitssveilspiercedsonsthesgroundssofsthinscapitalization.s-sCORRECTsANSWERSTrue

6.sAsforeignscorporationsconductssitssbusinessswithinsasdifferentsstatesthansthatsinswhichsitsissincorporated.s
-sCORRECTsANSWERSTrue

7.sGovernmentsownedscorporationssarescreatedsprimarilystosallowstheirsownersstoshaveslimitedsliability.s-
sCORRECTsANSWERSFalse




8.sAscorporationsissaslegalsentitysindependentsofsitssowners.s-sCORRECTsANSWERSTrue

9.sAsstate'sscourtssmaysexercisesjurisdictionsoversasforeignscorporationsthatsmakessascontractsinsthesstate.s-
sCORRECTsANSWERSTrue




10.sAsstatesmaysrequiresasforeignscorporationstospaystaxessonsitssinventorysthatsitswarehousessinsthesstate.s-
sCORRECTsANSWERSTrue




11.sWhichsofsthesfollowingsissincorrect?
s



a.sAsshareholder'ssinterestsinsascorporationsissfreelystransferable.
s



b.sTosbesgrantedsthesrightstosdosbusinesssassascorporation,sthesownerssofsasbusinesssmustsdemonstratestha
tsthescorporation'ssbusinesssissbeneficialstosthesinterestssofssocietysassaswhole.
s



c.sAscorporationsissaslegalsentitysindependentsofsitssmanagers.
s

, d.sAscorporationsusuallyspayssfederalsincomestaxsonsitssincome.s-
sCORRECTsANSWERSb.sTosbesgrantedsthesrightstosdosbusinesssassascorporation,sthesownerssofsasbusinesssm


ustsdemonstratesthatsthescorporation'ssbusinesssissbeneficialstosthesinterestssofssocietysassaswhole.

12.sNationalsShoesissincorporatedsinsNevadasbutshassasnationwidessalessforce.sJoe,sassalesmansbasedsinsthes
PacificsNorthwests(Washington,sOregon,sandsCalifornia),ssolicitssorderssfromsbusinessessinsthesstatesofsWa
shington,sbutsfinalsacceptancesoccurssinsNevada.sWashingtonswantssNationalsShoestosqualifystosdosbusines
ssinsitssstate.sMostslikely:
s



a.sNosqualificationsissrequired,ssincesitsissnotsdoingsintrastatesbusinesssinsthatsstate.
s



b.sQualificationsissrequired,ssincesitsissdoingsintrastatesbusinesssinsthatsstate.
s



c.sQualificationsissrequired,ssincesitswillseventuallyssendsitssproductstosthatsstate.
s



d.sQualificationsissrequired,ssincesitshassassalesmanscallingsuponscustomerssinsWashington.s-
sCORRECTsANSWERSa.sNosqualificationsissrequired,ssincesitsissnotsdoingsintrastatesbusinesssinsthatsstate.




13.sRuumsCompanysissincorporatedsinsTexas.sItsmanufacturesscomputerssatsasplantsinsAlabama,sbutsitssprin
cipalsofficesissinsGeorgia.sRuumsmustsqualifystosdosbusinesssin:



a.sTexas,sAlabama,sandsGeorgia.
s



b.sTexassandsGeorgiasonly.
s



c.sAlabamasandsGeorgiasonly.
s



d.sGeorgiasonly.s-sCORRECTsANSWERSc.sAlabamasandsGeorgiasonly.

14.sOutlandsCorporationsissincorporatedsinsWyoming,swheresitshassitssexecutivesoffice.sItshassasmanufacturi
ngsplantsinsUtah,sandsaswarehousesinsNewsMexico,swheresmostsofsitsssalessaresmade.sOutlandsisssubjectstost
axationsin:
s



a.sWyoming,sUtah,sandsNewsMexico.
s