Business law Chapter 38 – Corporations: Formation and Financing Fill in each blank with the exact legal term. 1. Corporations are separate or legal persons, existing separately from their shareholders. 2. Corporations have certain rights under the and Amendments, which state that government cannot deprive any “person” of life, liberty, or property without due process. 3. Corporations can distribute income to shareholders in the form of although they do not receive tax deductions for doing so. 4. (True/False) Since a corporation pays taxes on its income, shareholders do not have to pay taxes on the dividends they receive from the corporation. 5. (True / False) Corporations are liable for torts and crimes committed by their agents during the scope of their employment. 6. The power to lend money is known as an _power of a corporation. 7. A corporation is a corporation created by the government to help administer law. 8. (True / False) If a nonprofit corporation earns a profit, it must distribute it to shareholders. 9. A particular type of closely held corporation that is taxed as a partnership is known as an 10. begin the corporate creation and organization process by arranging for necessary capital, financing, and licenses. 11. This type of corporation has met the substantial elements of the incorporation process. a. De Jure corporation b. De Facto corporation 12. Debt securities, or represent loans to a corporation from another party.
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