True/False
Indicate whether the sentence or statement is true
or false.
|
|
|
1.
|
There
is considerable variation among state corporation laws.
|
|
|
2.
|
A
corporation cannot sue its shareholder.
|
|
|
3.
|
An
individual can become an owner of a corporation only by purchasing the minimum number of shares of
stock specified in the bylaws.
|
|
|
4.
|
Corporations have some of the same constitutional rights as natural
persons.
|
|
|
5.
|
A
corporation is liable for the torts of its officers committed within the course and scope of their
employment.
|
|
|
6.
|
Implied powers of a corporation may be restricted by a state's
constitution.
|
|
|
7.
|
Express powers of a corporation can be found in the law of the state of
incorporation.
|
|
|
8.
|
A
corporation cannot be formed without a profit-making purpose.
|
|
|
9.
|
Only
acts that fall within the express powers of a corporation are ultra vires.
|
|
|
10.
|
A
public corporation is also known as a publicly held corporation.
|
|
|
11.
|
In
some states, a close corporation can operate without formal directors' meetings.
|
|
|
12.
|
The
"minimum contacts" rule determines in which state a corporation should be
chartered.
|
|
|
13.
|
A
corporate charter can state generally that the corporation is organized to conduct "any legal
business."
|
|
|
14.
|
Most
states limit the duration of a corporation's existence to fifty years.
|
|
|
15.
|
Promoters, not incorporators, must execute the articles of
incorporation.
|
|
|
16.
|
Every
corporation must identify a specific person as an agent to receive legal documents on behalf of a
corporation.
|
|
|
17.
|
A
certificate of incorporation represents a state's authorization for a corporation to conduct
business.
|
|
|
18.
|
On
the basis of a defect in incorporation, a third party may be able to avoid liability to the
"corporation."
|
|
|
19.
|
To a
corporation, bonds represent ownership.
|
|
|
20.
|
Those
persons who hold preferred stock are the sole owners of that firm.
|