BUL 5810 – CORPORATIONS Test 2 with Questions and 100% Correct Answers
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Course
BUL 5810
Institution
BUL 5810
BUL 5810 – CORPORATIONS Test 2 with
Questions and 100% Correct Answers
James, a promoter of Unobtainium Corporation, has a fiduciary duty to: - Answer
Both the other promoters and the initial shareholders of Unobtainium
Corporation
Use of "Evans & Hall, Ltd." as a corporate name would be: - ...
BUL 5810 – CORPORATIONS Test 2 with
Questions and 100% Correct Answers
James, a promoter of Unobtainium Corporation, has a fiduciary duty to: - Answer
Both the other promoters and the initial shareholders of Unobtainium
Corporation
Use of "Evans & Hall, Ltd." as a corporate name would be: - Answer permissible as
long as it is distinguishable from the nae of any other domestic corporation or any
foreign corporation authorized to do business within the state
Wyatt, the sole stockholder of International Travel Corporation, wrongfully used
the corporation to avoid a personal liability. A court's disregarding the corporate
entity and holding Wyatt personally liable is called: - Answer piercing the
corporate veil
Claire opened Claire's Beauty Parlor in her home. She solicited funds to begin the
business from Jack, who believed that the business was incorporated. Claire had,
in fact, never filed the papers. One day, Claire fell asleep while giving a customer a
permanent and the solution caused her customer severe burns. The customer
sued the Beauty Parlor for $500,000, an amount enormously in excess of the
business assets. Under the Revised Act, what would be the result? - Answer Jack
would not be personally liable, but Claire would
The president of Hi-Glow Cosmetics sends his top chemist to Hi-Glow's
competitor's labs to steal its formula for shiny lipstick. The chemist gets caught
and is sent to jail. Can Hi-Glow be found to be criminally liable? - Answer Yes,
since the president authorized the crime
, Deer Haven, Inc. is a corporation incorporated in Arkansas and has its principal
office in San Antonio, Texas. Which of the following is true of Deer Haven, Inc.'s
citizenship status? - Answer Deer Haven, Inc. is a citizen of Arkansas and Texas,
for the purpose of determining diversity of citizenship
Carlos is a promoter of Debonair Enterprises, Inc. To whom, if any, does Carlos
owe a fiduciary duty? - Answer Carlos owes a fiduciary duty to any other
promoters of Debonair Enterprises.
Robert approaches you and seeks to form a corporation. He asks you which
document should he create to govern the corporation. What do you tell him? -
Answer Create Articles of Incorporation
Shareholders of Tridential, Inc. are worried that the court will "pierce" its
corporate veil and hold the shareholders liable. Which of the following factors will
a court consider in deciding whether to pierce Tridential, Inc.'s corporate veil?
a. Tridential, Inc. did not follow the formalities of corporate procedures.
b. Tridential, Inc. did not provide an adequate financial basis for the business.
c. Tridential, Inc. did used the corporation to defraud others. - Answer ALL OF
THESE ARE CORRECT
Michael is truck driver employed by Simmons Construction Corporation. While
operating the truck during business hours, Michael negligently crashes into Peter.
Is Simmons Construction Corporation liable? - Answer Yes, Simmons Construction
Corporation is liable under the doctrine of respondeat superior
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