LEGL 2700 Test 4 Exam Questions
With 100% Verified Answers
Corporation -
correct answer ✅an artificial, intangible entity created under the
authority of a state's law; managed by officers, limited liability, and
double taxation
Pros of a Corporation -
correct answer ✅limited liability for all shareholders, investor
friendly, and access to public markets
Cons of a Corporation -
correct answer ✅Private- minority shareholders have little control,
Public- ownership/management split, and double taxation
Domestic Corporation -
correct answer ✅a corporation in the state in which it is
incorporated
Foreign Corporation -
correct answer ✅a corporation in any state in which it does
business except the one in which it is incorporated
,LEGL 2700 Test 4 Exam Questions
With 100% Verified Answers
Alien Corporation -
correct answer ✅a corporation chartered by a foreign government
and conducting business in the United States
Charter -
correct answer ✅creates a corporation
Incorporators -
correct answer ✅signs a charter
Articles of Incorporation -
correct answer ✅the formal application for a corporate charter
Shareholders -
correct answer ✅elect the board of directors
Directors -
correct answer ✅set the objectives or goals of the corporation,
and they appoint the officers
Officers -
correct answer ✅charged with managing the daily operations of
, LEGL 2700 Test 4 Exam Questions
With 100% Verified Answers
the corporation in an attempt to achieve the stated organizational
objectives or goals
Proxy -
correct answer ✅an agent appointed by a shareholder for the
purpose of voting the shares
Derivative Suit -
correct answer ✅if the majority is acting illegally or oppresses the
rights of the minority shareholders
Corporate Shareholders -
correct answer ✅Limited Personal Liability
Piercing the Corporate Veil -
correct answer ✅when courts find that the corporate organization
is being misused, the corporate entity can be disregarded
Alter Ego Theory -
correct answer ✅one method used by courts to pierce the
corporate veil when a shareholder fails to treat the corporate
organization as a separate legal entity
With 100% Verified Answers
Corporation -
correct answer ✅an artificial, intangible entity created under the
authority of a state's law; managed by officers, limited liability, and
double taxation
Pros of a Corporation -
correct answer ✅limited liability for all shareholders, investor
friendly, and access to public markets
Cons of a Corporation -
correct answer ✅Private- minority shareholders have little control,
Public- ownership/management split, and double taxation
Domestic Corporation -
correct answer ✅a corporation in the state in which it is
incorporated
Foreign Corporation -
correct answer ✅a corporation in any state in which it does
business except the one in which it is incorporated
,LEGL 2700 Test 4 Exam Questions
With 100% Verified Answers
Alien Corporation -
correct answer ✅a corporation chartered by a foreign government
and conducting business in the United States
Charter -
correct answer ✅creates a corporation
Incorporators -
correct answer ✅signs a charter
Articles of Incorporation -
correct answer ✅the formal application for a corporate charter
Shareholders -
correct answer ✅elect the board of directors
Directors -
correct answer ✅set the objectives or goals of the corporation,
and they appoint the officers
Officers -
correct answer ✅charged with managing the daily operations of
, LEGL 2700 Test 4 Exam Questions
With 100% Verified Answers
the corporation in an attempt to achieve the stated organizational
objectives or goals
Proxy -
correct answer ✅an agent appointed by a shareholder for the
purpose of voting the shares
Derivative Suit -
correct answer ✅if the majority is acting illegally or oppresses the
rights of the minority shareholders
Corporate Shareholders -
correct answer ✅Limited Personal Liability
Piercing the Corporate Veil -
correct answer ✅when courts find that the corporate organization
is being misused, the corporate entity can be disregarded
Alter Ego Theory -
correct answer ✅one method used by courts to pierce the
corporate veil when a shareholder fails to treat the corporate
organization as a separate legal entity
