QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
QUESTION 1
1. If a corporation is unable to pay all of its debts, its shareholders:
|
|
have limited liability and are not legally responsible for the unpaid debts of the corporation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are personally responsible for all of the unpaid debts of the corporation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation. |
6 points
QUESTION 2
1. A bond is:
|
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation. |
|
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond. |
|
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond. |
|
an ownership interest in the corporation that allows the holder to vote in corporate elections. |
6 points
QUESTION 3
1. Shares of stock in a corporation that is issued to a shareholder for less than the market value of the stock is:
|
watered stock. |
|
no-par stock. |
|
par-value stock. |
|
a stock warrant. |
6 points
QUESTION 4
1. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
|
dividend taxation. |
|
corporate taxation. |
|
double taxation. |
|
retained earnings taxation. |
6 points
QUESTION 5
1. If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:
|
unlimited liability. |
|
centralized management. |
|
respondeat superior. |
|
ultra vires. |
6 points
QUESTION 6
1. When a corporation earns a profit, the corporation has to pay income taxes on that profit. The profit that remains after income tax is paid can be used by the corporation as either:
|
salaries or retained earnings. |
|
dividends or expenses. |
|
retained earnings or savings. |
|
dividends or retained earnings. |
6 points
QUESTION 7
1. __________ represent ownership interests in a corporation.
|
Debt securities |
|
Equity securities |
|
Subscription agreements |
|
Tender offers |
6 points
QUESTION 8
1. Can a corporation that is incorporated in one state do business in other states?
|
No, a corporation can only do business in the state where it is incorporated. |
|
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated. |
|
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated. |
6 points
QUESTION 9
1. What does it mean that a corporation is a separate legal entity?
|
The corporation is owned by people who are known as shareholders. |
|
The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. |
|
The corporation has to be managed by people who are not shareholders in the corporation. |
|
The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the corporation. |
6 points
QUESTION 10
1. A corporation that meets specific conditions and that is taxed like a partnership is a(n):
|
nonprofit corporation. |
|
closely held corporation. |
|
subchapter S corporation. |
|
professional corporation. |
6 points
QUESTION 11
1. One of the negative aspects of the corporate form of doing business is double taxation, which occurs when a corporation pays dividends to shareholders from profits that have already been taxed and the dividends, when received by shareholders, are taxed again. How does the use of a subchapter S corporation address the issue of double taxation?
20 points
QUESTION 12
1. What is the difference between a
de jure corporation and a
de facto corporation, and what is necessary to form each?
image1.wmf
image2.wmf
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