Which of the following types of securities represent ownership in a corporation?

Question

Which of the following types of securities represent ownership in a corporation?

a.Debt

b.Equity

c.Finance

d.Formal

e.Certified

The articles of incorporation determine who has the power to amend the corporate bylaws after the first organizational meeting.

True

False

Only the state can challenge a de facto corporation's existence as a corporate entity in a suit called an action of ____.

a.Quo facto

b.Quo jure

c.Quo warranto

d.Sine qua non

e.Res ipsa

Which of the following is false regarding management of a corporation?

a.Shareholders generally participate in corporate management.

b.Shareholders elect a board of directors.

c.The board of directors selects officers to manage the day-to-day business of the corporation.

d.If shareholders die, corporations do not dissolve.

e.In most states, corporations can exist indefinitely.

A court may hold that a defective corporation is a[n] ______ in order to prevent it from claiming it is not a corporate entity in order to escape liability to a third party.

a.De jure corporation

b.De facto corporation

c.Corporation by estoppel

d.Corporation by reservation

e.Inactive corporation

Explanation / Answer

b. Equity. Equity holders have percentage stake in the organization.

False. Article of incorporation includes Name of corporation, Number of shares issued, Name and address.

c. Quo warranto proceeding can only be used to challenge a de facto corporation's existence as a corporate entity.

a. Shareholders generally participate in corporate management.

c. Corporation by estoppel

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