A corporation cannot start its operation if the Securities and Exchange Commission (SEC) does not issue the corporation’s certificate of incorporation. What principle is applied in this scenario a. None of the above b. Separate and distinct personality of the corporation c. Corporation is created by operation of law d. Corporation has a right of succession

A corporation cannot start its operation if the Securities and Exchange Commission (SEC) does not issue the corporation’s certificate of incorporation. What principle is applied in this scenario a. None of the above b. Separate and distinct personality of the corporation c. Corporation is created by operation of law d. Corporation has a right of succession

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 12MCQ

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Similar questions

Which is not a mode of involuntary dissolution of a corporation? a. Legislative revocation of franchise b. Judicial decree c. Order of the SEC d. Expiration of corporate term
Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts in its own name. Ob. It may sue and be sued. c. The acts of its owners bind the corporation. Od. It may buy, own, and sell property.
A corporation incurred liabilities to its suppliers. The suppliers filed a case against the board of directors of the corporation. The court dismissed the case based on the ground that the liabilities to the suppliers only belong to the corporation, not its board of directors. What principle is being applied in this scenario? Separate and distinct personality of the corporation None of the above Corporation has a right of succession Corporation is created by operation of law
Which of the following acts does NOT require an amendment to the Articles of Incorporation of a corporation? Change of corporate name. Change of principal place of business. Change in outstanding capital stock. Change in corporate term.
What is the principle under the Corporation Law that allows the court to identify the erring corporator and make him/her liabilities to third persons even if the corporator belongs to a corporation? None of the above Doctrine of mutual agency Doctrine of piercing the veil Doctrine of limited liability
true or false ?
give correct ans with explanation
What principle is applied when the properties bought by a corporation is wholly owned by the corporation? This principle also requires that all the properties of the corporation must be used for the benefit of the corporation only. None of the above Corporation is created by operation of law Corporation has a right of succession Separate and distinct personality of the corporation
If the corporation intends to shorten its life, what is the remedy of the corporators? Amend the by-laws Amend the articles of incorporation Dissolve the corporation Amend the certificate of incorporation
2. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the debts of the business. c. is owned by its stockholders. d. terminates when one of its original stockholders dies.
How are shareholders of a corporation viewed in legal terms? O None of these describe the legal relationship of the owner to the business. O The assets of the owner are not considered separate from the asset of the business. O The owner and the business are separate legal entities. O The owner and the business are not separate legal entities.
Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of stockholdersc. Mutual agencyd. Both b and c