1. Millard and Locke are shareholders of Fillmore Transport, Inc. Which the following Fillmore actions would require their approval?
a. Hiring of a chief executive officer
b. Declaring a corporate dividend
c. Amending the articles of incorporation
d. All of the above
2. The bylaws of a corporation
a. are adopted at its first organizational meeting.
b. are submitted for approval to the public official in charge.
c. establish the value and classes of corporate stock.
d. establish the operating name of the corporation.
3. The minimurn number of shareholders that must be present at a meeting before shareholders can vote is
a. a voting trust.
b. a voting list
c. a quorum.
d. a proxy.of
4. Abe and Mary are shareholders of Lincoln Construction Company. Lincoln must hold a shareholders' meeting
a. once a month.
b. once a year.
C. once every two years.
d. only when it is called by the board of directors.
5. Taj Mahal, Inc., a franchisor of pizza restaurants, wishes to standardize the pricing practices of its franchisees, who have engaged in price-cutting to increase their respective shares of the market. The most prudent remedy might be for Taj to
a. set the prices at which its franchisees sell their products to the public.
b. publish a list of suggested prices.
c. terminate those franchisees who continue to cut prices.
d. none of the above.
6. Tina bought a sports Grill franchise. Tinars agreement with the franchisor requires that she purchase sports Grill products for every phase of the operation, from napkins and sink cleaner to kitchen utensils and cash register tape. Tina challenges this requirement because she wishes to buy less expensive products available elsewhere Her best argument is probably that the requirement violates
a. federal antitrust laws.
b. the First Amendment
c. the Equal Protection Clause.
d. the commerce clause.
7. A close corporation is
a. exempt from corporate duties such as filing a certificate of incorporation.
b. taxed in the same manner as a partnership.
c. eligible to make public offerings of securities.
d. generally allowed to restrict transfer of stock.
8. The form of business consisting of at least one general partner and one or more limited partners is
a. a general partnership.
b. a limited partnership.
C. a corporation.
d. a sole proprietorship.
9. A foreign corporation
a. is chartered in a country other than the U.S., such as Peru.
b. is a synonym for an alien corporation.
c. may be required to obtain a certificate of authority to do business in states where it is not chartered.
d. may transact business only in foreign nations.
10. Sherrie and Al operate a business out of their home and are thinking of incorporating. Which of the following types of corporations would allow them to avoid the double taxation of the corporate form?
a. An S corporation
b. A C corporation
c. A close corporation
d. None of the above