If the Proper Procedure for Incorporation Has Been Followed, the Corporation

question 25

Multiple Choice

If the proper procedure for incorporation has been followed, the corporation has a legal right to exist and is called a(n) : ______.

• A) corporation by estoppel
• B) de jure corporation.
• C) de facto corporation.
• D) ultra vires corporation.

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Definitions:

Risky Driving

Driving behavior that increases the likelihood of an accident or harm, such as speeding, driving under the influence of alcohol or drugs, or not obeying traffic signals.

Safe Drivers

Individuals who exhibit behaviors and practices that significantly reduce the likelihood of being involved in accidents or receiving traffic citations.

Information Asymmetry

A situation where one party in a transaction has more or superior information compared to another. This can cause market inefficiencies and power imbalances.

Moral Hazard

The situation where one party is more likely to take risks because another party bears the consequences.