BUSI 301 Week 5: Ch. 15 questions with correct answers

BUSI 301 Week 5: Ch. 15 questions with correct answersBusiness corporation law - correct answer Often the title for a specific state law that covers such matters as the structure of the corporation, oversight of the activity of the corporation's managers, rights of the principals in the case of the sale of assets or ownership interests, annual reporting requirements, and other issues that affect the internal rules of the business venture. Revised Model Business Corporation Act (RMBCA) - correct answer Model act drafted by the American Law Institute and adopted by over half of the states as a template for compiling their own statutes governing corporations. Corporation - correct answer A fictitious legal entity that exists as an independent "person" separate from its principals. privately held corporations - correct answer A corporation that does not sell ownership interests through sales via a broker to the general public or to financial institutions or investors. are owned exclusively by a group of private individuals __________________ held corporations have substantial flexibility in terms of their internal operating procedures and do not generally have to comply with rigorous corporate structures or formalities. For example, in lieu of an actual meeting, privately held corporations often use a single document signed by each principal to dispose of necessary tasks such as electing directors or issuing stock. This document is known as a unanimous consent resolution. Many states give privately held corporations the option of electing to become a closely held or family-held entity. This option further restricts the number or type of owners that a corporation may have, but it provides even more flexibility in regard to how the business venture may be organized and managed. Note: even though many ________________ held corporations have a relatively small number of shareholders, there is no limit in terms of revenue. It is not uncommon for corporations with revenues in the eight-