Question

Answer the following question:

Promoters are individuals who form the corporation, and often receive stock in exchange for their efforts.
Ture/False

An advantage of a partnership over a corporation is that an interest in a partnership can be freely traded in the open market.
Ture/False

The state of Delaware offers corporate-friendly laws in order to incentivize companies to incorporate in Delaware
Ture/False

A corporation, like a natural person, is entitled to due process under the law.
Ture/False

If corporate officers do not follow corporate formalities like holding annual meetings or filing reports with the state, those corporate officers could lose the limited liability protection of the corporate form.
Ture/False

A corporation must be headquartered in the same state where it is incorporated.
Ture/False

If a shareholder in a corporation is not able to physically attend an annual meeting in which a vote takes place, the shareholder may designate another person to be their proxy to vote for them at the meeting.
Ture/False

Shareholders in a corporation elect the CEO and key executives of the corporation but not the board of directors.
Ture/False

The Sarbanes-Oxley Act of 2002 was enacted to curb fraudulent accounting practices.
Ture/False

A director of a corporation owes a duty of loyalty and a duty of care to the corporation and its stockholders.
Ture/False

Answer 1

The main role of a promoter is to establish a company during its incorporation stage. For this work, they are remunerated in cash or partly in cash and partly in stock.

Answer: True

In case of company, the shares of the member are transferable. But in case of partnership, the partner share is not transferable in all cases. Only publically traded partnership allows the interest of a partner to be traded in the market.

Answer: False

Delaware is considered as the most corporate-friendly state which encourage corporate to do business. It has a special court, to settle disputes of corporation in a much quicker and easier way.

Answer: True

Since the corporation is granted some of the same rights as entitled to a natural person. It is also entitled to due process under the law like a natural person.

Answer: True

As per policy, I can solve first 4 questions only.

Please repost the other questions separately.

Thanks.