1. Which of the following describes a possible form of dissolution of a corporation?
A. The organizers give the corporation an end date so when the mission is completed it comes to an end
B. The organization’s managers decide to sell the corporation
C. The corporation officers decide to rename the organization
D. The corporation is bought out
2. Which of the following explains the capacity to contract?
A. Legal actions are a responsibility of management
B. Legal actions are a responsibility of the corporation
C. Legal actions are a responsibility of employees
D. Legal actions are a responsibility of investors
3. Which of the following is NOT a benefit of perpetual life?
A. It allows the corporation to continue even if shareholders do not
B. It allows corporations to be a safer and more stable place to invest money
C. It raises the chances an investor has of seeing a return on their money
D. It has the ability to expose personal assets
4. In a limited liability an individuals liability is limited to which of the following?
A. The value of the investment in the company
B. All personal assets
C. The value of the entire company
D. The amount determined in a contract
5. Which of the following represents a legal title of ownership?
A. Dissolution papers
B. Hierarchical forms
C. Share certificate
D. Perpetual license
