Question

 

1. When will a court pierce the corporate veil?
a. When there may have been a defect in the incorporation process.

b. When there is domination of the corporation by one or more of its shareholders

c. When the domination of the corporation results in an improper purpose

d.Whenever there a single-shareholder-owned or closely held corporation which did not file an annual statement with the Secretary of State.

 

2. Which of the following is reported on Form 8-K?

a.audited financial statements

b.the resignation of a director over a policy dispute

c.unaudited financial statements

d.All of these are correct.

3. Which of the following statements are True about the Securities Exchange Act of 1934?

a. It regulates short-swing profits in order to stop speculative insider trading.

b.It requires initial disclosures from issuers of securities.

c.Rule 10b-5 of the Securities And Exchange Act of 1934 applies to securities that do not have to be registered.

d.It is a blue-sky law.

4. If a person accepts the benefits of an unauthorized transaction, or fails to repudiate it, then he is bound by the act as if he had originally authorized it.

True

False

 

5. Lina was fired from Minnie's Mart because she was stealing from the cash register. A police report was filed. A prospective employer called Minnie's Mart for a reference and was told that Lina was fired for stealing. Minnie's Mart has defamed Lina.

True

False

 

6. Overall, directors of large publicly traded corporations get paid very little for the amount of work they perform.

True

False

Answer 1

1. When will a court pierce the corporate veil?

b. When there is domination of the corporation by one or more of its shareholders

c. When the domination of the corporation results in an improper purpose

2. Which of the following is reported on Form 8-K?

d.All of these are correct.

3. Which of the following statements are True about the Securities Exchange Act of 1934?

a. It regulates short-swing profits in order to stop speculative insider trading. TRUE

b.It requires initial disclosures from issuers of securities. TRUE

c.Rule 10b-5 of the Securities And Exchange Act of 1934 applies to securities that do not have to be registered. FALSE

d.It is a blue-sky law. TRUE

4. If a person accepts the benefits of an unauthorized transaction, or fails to repudiate it, then he is bound by the act as if he had originally authorized it.

True

5. Lina was fired from Minnie's Mart because she was stealing from the cash register. A police report was filed. A prospective employer called Minnie's Mart for a reference and was told that Lina was fired for stealing. Minnie's Mart has defamed Lina.

False

6. Overall, directors of large publicly traded corporations get paid very little for the amount of work they perform.

False