Quiz 1 Corp

Preferred shares always receive dividends.

• True

• False

The debts of the corporation are not the debts of the stockholders.

• Doctrine of Separate Juridical Personality

• Doctrine of Limited Liability

• Doctrine of Piercing the Veil of Corporate Fiction

• Legal Capital Doctrine

Business organization established for a temporary purpose. It has no separate juridical personality

• Joint Account

• Joint Venture

• Partnership

• Cooperative

The stockholder can be made personally liable for the debts of the corporation up to the extent of his unpaid subscription

• Doctrine of Piercing the Veil of Corporate Fiction

• Doctrine of Separate Personality

• Legal Capital Doctrine

• Doctrine of Limited Liability

Redemption of shares should not be prejudicial to the creditors. A portion of the capital must be reserved in payment of the creditors.

• Doctrine of Piercing the Veil of Corporate Fiction

• Doctrine of Separate Personality

• Legal Capital Doctrine

• Doctrine of Limited Liability

Makes the shareholders liable for the debts of the corporation because of fraud committed by the corporation.

• Doctrine of Piercing the Veil of Corporate Fiction

• Doctrine of Separate Personality

• Legal Capital Doctrine

• Doctrine of Limited Liability

  occurs when a party with a claim against an individual or corporation attempts to be repaid with assets of a corporation owned or substantially controlled by the defendant

• reverse

• insider reverse

• outsider reverse

• traditional

A certificate of incorporation is not issued to a de facto corporation.

• True

• False

• It depends.

One whose stocks are held only by not exceeding 20 stockholders.

• Religious Corporation

• Educational Institution

• Close Corporation

• Non-stock corporation

The preferred shares can be classified as non-voting shares in the certificate of incorporation and in the certificate of stock.

• True

• False