28. (Chapter 16) Piercing the corporate veil\" can refe to: a. Denying corporate

Question

28. (Chapter 16) Piercing the corporate veil" can refe to: a. Denying corporate existence to a corporation. b, Denying limited liability to owners of a corporation because the C. d. Denying limited liability to owners of a corporation where the corporate affairs corporation failed to exercise reasonable care in its business decisions. were not sufficiently segregated from those of the owners. ng a corporation to pay a dividend to its shareholders. (Chapter 16) Which of the following is true? a. b. 29. Bonds and debentures are two different terms to describe the same instrument A bo nd is a debt security and a debenture is the agreement between the bondholder and the corporation. A bond is an instrument that has a maturity of more than five years and a debenture has a maturity of less than five years. A bond is a secured instrument and a debenture is an unsecured instrument c. d. (Chapter 16) Corporations are required to hold shareholders' meetings at least: a. Annually. b. Every six months. 30. c. Twice a year, but they are not required to be held every six months. d. Quarterly 31. (Chapter 16) Which of the following is NOT a characteristic of a corporation? a free transferability of shares b. perpetual existence c. decentralized management d. limited liability of shareholders (Chapter 16) With respect to preferred stock, the right to be paid before common stockholders if the corporation is dissolved is called: a. dividend preference. b. liquidation preference. C. a conversion right. d. participating preferred stock. 32. 33. (Chapter 16) A years or less.is is a short-term debt security with a maturity of five short-term a. debenture b. bond c. note d. stock

Explanation / Answer

28 Piercing the corporate veil can refer to

b. denying limited liability to owners of a corporation where the corporation affairs were not sufficiently segregated from those of the owners.

Explanation - piercing the corporation wheel refers to a situation where Court directly hold shareholder as the accountable entity rather than putting up the liabilities on the limited liability for the organisation.

29 Which of the following is true

b. A bond is a dept security and adventure is the agreement between the bondholder and the corporation.

Explanation- bond is the specific agreement of certificate which describes the security between the organisation and the shareholder which is an application of the borrower towards the lender. Where debenture is an instrument which is used for supplementing the capital for the company between debenture holder and the showing company.

30. Corporations are required to hold shareholders meeting at least

a. Annually

Explanation- according to the Corporate Law, every organisation is required to hold a meeting once a year in the mandatory basis.

31 Which of the following is not a characteristics of Corporation?

d. Limited liability of stakeholders

Explanation- in a specific operation not only shareholders are limited to the liabilities ,they are just liable for the value of its shares rather than being solely liable for limited liability.

P.S.- please use multiple Threads for asking long question sets.

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