LEGS 3010 Chapter 22 Exam Questions with Correct Answers Latest Update 2025/2026
State - Answers ______ generally governs corporations.
Corporation can sue or be sued by others - Answers Which of the following is a true statement
about whether corporations can sue and/or be sued by others?
Corporations can sue, but cannot be sued by others.
Corporations cannot sue, but can be sued by others.
Corporations can neither sue nor be sued by others.
Corporations can sue or be sued by others.
The fourth - Answers _____ Amendment to the U.S. Constitution protects corporations from
unreasonable searches and seizures.
State - Answers Each individual corporation's charter creates a contract between that
corporation and the ______.
shareholders; liable - Answers Because corporations are legal entities distinct from their ______,
corporations are _____ for corporate actions.
More than 25 - Answers _____ states have adopted at least part of the Revised Model Business
Corporation Act (RMBCA).
their corporate shares - Answers Generally, shareholders can freely transfer ______.
Corporations - Answers In U.S. law, ______ are legal entities.
do not dissolve - Answers If shareholders die, corporations ______.
Corporations have due process rights under both the Fifth and the Fourteenth Amendments to
the U.S. Constitution. - Answers Which of the following is an accurate statement about
corporations and due process rights?
State - Answers ____ incorporation statutes establish the requirements for corporate formation.
Directors - Answers Shareholders of a corporation elect a board of ______ to manage the
corporation.
Corporations are required to pay federal and state taxes on their income - Answers Which of the
following is an accurate statement about the taxation of corporations?
limited to his or her corporate investment - Answers A shareholder's liability for corporate
, actions is ______.
Respondeat superior - Answers Corporations are liable for the torts and crimes committed by
their agents during the scope of their employment. Courts refer to this liability as the doctrine of
______.
Shareholders' shares are only transferable upon their death - Answers Which of the following is
an incorrect statement about shareholder transferability of corporate shares?
Shareholders' shares are only transferable upon their death.
Generally, shareholders can freely transfer their corporate shares.
Shareholders can sell their shares.
Shareholders can give their shares to charity.
incorporation - Answers States give powers to corporations through state incorporation statutes
and through each corporation's articles of ______.
The life of a corporation does not end when the lives of its owners end - Answers Which of the
following is an accurate statement about the life of a corporation?
The life of a corporation ends when the lives of two or more of its owners end.
The life of a corporation ends when the lives of a majority of its owners end.
The life of a corporation ends when the life of one of its owners ends.
The life of a corporation does not end when the lives of its owners end.
T corporations - Answers Which of the following is not a way corporations can be classified?
S corporations.
Professional corporations.
T corporations.
Publicly-held or closely-held corporations.
officers - Answers The board of directors of a corporation selects ______ to manage the day-to-
day business of the corporation.
State - Answers ______ generally governs corporations.
Corporation can sue or be sued by others - Answers Which of the following is a true statement
about whether corporations can sue and/or be sued by others?
Corporations can sue, but cannot be sued by others.
Corporations cannot sue, but can be sued by others.
Corporations can neither sue nor be sued by others.
Corporations can sue or be sued by others.
The fourth - Answers _____ Amendment to the U.S. Constitution protects corporations from
unreasonable searches and seizures.
State - Answers Each individual corporation's charter creates a contract between that
corporation and the ______.
shareholders; liable - Answers Because corporations are legal entities distinct from their ______,
corporations are _____ for corporate actions.
More than 25 - Answers _____ states have adopted at least part of the Revised Model Business
Corporation Act (RMBCA).
their corporate shares - Answers Generally, shareholders can freely transfer ______.
Corporations - Answers In U.S. law, ______ are legal entities.
do not dissolve - Answers If shareholders die, corporations ______.
Corporations have due process rights under both the Fifth and the Fourteenth Amendments to
the U.S. Constitution. - Answers Which of the following is an accurate statement about
corporations and due process rights?
State - Answers ____ incorporation statutes establish the requirements for corporate formation.
Directors - Answers Shareholders of a corporation elect a board of ______ to manage the
corporation.
Corporations are required to pay federal and state taxes on their income - Answers Which of the
following is an accurate statement about the taxation of corporations?
limited to his or her corporate investment - Answers A shareholder's liability for corporate
, actions is ______.
Respondeat superior - Answers Corporations are liable for the torts and crimes committed by
their agents during the scope of their employment. Courts refer to this liability as the doctrine of
______.
Shareholders' shares are only transferable upon their death - Answers Which of the following is
an incorrect statement about shareholder transferability of corporate shares?
Shareholders' shares are only transferable upon their death.
Generally, shareholders can freely transfer their corporate shares.
Shareholders can sell their shares.
Shareholders can give their shares to charity.
incorporation - Answers States give powers to corporations through state incorporation statutes
and through each corporation's articles of ______.
The life of a corporation does not end when the lives of its owners end - Answers Which of the
following is an accurate statement about the life of a corporation?
The life of a corporation ends when the lives of two or more of its owners end.
The life of a corporation ends when the lives of a majority of its owners end.
The life of a corporation ends when the life of one of its owners ends.
The life of a corporation does not end when the lives of its owners end.
T corporations - Answers Which of the following is not a way corporations can be classified?
S corporations.
Professional corporations.
T corporations.
Publicly-held or closely-held corporations.
officers - Answers The board of directors of a corporation selects ______ to manage the day-to-
day business of the corporation.
