Only the State Can Challenge a De Facto Corporation's Existence

question 25

Multiple Choice

Only the state can challenge a de facto corporation's existence as a corporate entity in a suit called an action of ________.

• A)Res ipsa
• B)Quo warranto
• C)Quo facto
• D)Sine qua non
• E)Quo jure

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Definitions:

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor costs.

Industry Short-run

A period in which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust fully to market changes.

Marginal Cost

The financial addition incurred by manufacturing one more unit of a product or service.