Acts of a corporation that goes beyond the powers granted to it by the state or in its charter are _____________acts.
a. Criminal
b. Ultra vires
c. Preemptive
d. Peremptory
What happens when a court pierces the corporate veil?
a. Shareholders become personally liable for the debts of the corporation.
b. The court revokes the corporate charter.
c. The promoter becomes liable for the debts of the newly formed corporation
d. The court requires that the corporation be more substantially capitalized.
Which of the following are not grounds for a state cancelling a corporation’s charter?
a. The corporation has not made a profit in 3 years.
b. The corporation did not pay its franchise tax
c. The corporation failed to maintain a registered agent in the state.
d. The corporation has not performed any corporate functions for a long time.
The merger of a corporation with one of its suppliers is a _____________merger.
a. Conglomerate
b. Market extension
c. Horizontal
d. Vertical