Chapter 41 - History and Nature of Corporations

Prior to the mid-1800s, U.S. corporations were limited by law in terms of time and scope of operations.

• True
• False

A corporation is a fictitious, but legal, person.

• True
• False

Corporations may be classified only in terms of ownership.

• True
• False

Under the Commerce Clause, states have the power to regulate commerce within their state.

• True
• False

A company under Kansas law is domestic when it operates within Kansas and a foreign company in any other state.

• True
• False

C Inc. is owned by 2. The 2 built homes from $ loaned to C Inc. Corporate shield provides absolute liability protection.

• True
• False

A state law that regulates business activities of a foreign corporation is constitutional if :

• It serves a legitimate state interest.

• The legitimate state interest outweighs the burden on interstate commerce.

• It is the most burdensome means of promoting that interest.

• Blue (serves) and turquoise (legitimate) but not yellow (most).

Which of the following activities meet the requirements for doing business in a state?

• Owning personal property as investment.
• Maintaining a bank account for collection purposes.
• Maintaining a storefront for product sales.
• All of the above.