Course materials

1. Centralized management. – nursing writers
Question 1If an employee of a corporation, while carrying out the duties of their job, does
something that causes injury or damage to a third party, the corporation will be liable for
those injuries or damage under the doctrine of:unlimited liability.centralized
management.respondeat superior.ultra vires.6 pointsQuestion 2A bond is:an ownership
interest in a corporation that gives the owner preferences with respect to the assets of the
corporations and dividends paid by the corporation.a debt instrument that allows the
holder to convert the debt into a number of shares in the corporation having a value equal
to the amount of the bond.a debt instrument that requires the corporation to pay the holder
a stated amount of interest for a stated period of time and then to pay the holder the
amount of the bond.an ownership interest in the corporation that allows the holder to vote
in corporate elections.6 pointsQuestion 3With respect to the formation of a corporation, a
subscriber is:a person who has purchased stock in a newly formed corporation.a person
who has offered to purchase a specific number of shares in a corporation that is to be
formed.a person who has expressed an interest in purchasing stock in a corporation that is
to be formed but who has not committed to the number of shares to be purchased.a person
who begins the process of forming a new corporation.6 pointsQuestion 4A corporation that
meets specific conditions and that is taxed like a partnership is a(n):nonprofit
corporation.closely held corporation.subchapter S corporation.professional corporation.6
pointsQuestion 5Shares of stock in a corporation that is issued to a shareholder for less than
the market value of the stock is:watered stock.no-par stock.par-value stock.a stock
warrant.6 pointsQuestion 6If a shareholder sells his or her stock in a corporation, what is
the effect of that sale on the corporation?The corporation has to be reorganized to include
the new shareholders.There is no effect on the corporation.The existence of the corporation
ends, and a new corporation must be created.The sale is not effective to transfer the stock to
the other party to the sale.6 pointsQuestion 7Can a corporation that is incorporated in one
state do business in other states?No, a corporation can only do business in the state where it
is incorporated.Yes, a corporation can do business in states where it is not incorporated by
obtaining a certificate of authority in states where it is not incorporated.Yes, a corporation
can do business in a state where it is not incorporated, but it must re-incorporate in states
where it was not originally incorporated.Yes, a corporation can do business in a state where
it is not incorporated, but it must use another name in a state where it is not incorporated.6
pointsQuestion 8__________ represent ownership interests in a corporation.Debt
securitiesEquity securitiesSubscription agreementsTender offers6 pointsQuestion

2. 9Dividends paid to shareholders by corporations are paid from profits of the corporation
after the corporation has paid income taxes on those profits. When a shareholder receives a
dividend, that dividend is taxable income to that shareholder. These income tax
consequences are known as:dividend taxation.corporate taxation.double taxation.retained
earnings taxation.6 pointsQuestion 10Shareholders in a corporation elect __________ who are
responsible for the overall management of the
corporation.officerspromotersdirectorsincorporators6 pointsQuestion 11One of the
negative aspects of the corporate form of doing business is double taxation, which occurs
when a corporation pays dividends to shareholders from profits that have already been
taxed and the dividends, when received by shareholders, are taxed again. How does the use
of a subchapter S corporation address the issue of double taxation?Your response must be
at least 75 words in length.For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).The
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