Which of the Following Is a Corporation That Has Not

question 58

Multiple Choice

Which of the following is a corporation that has not substantially met the requirements of the state incorporation statute, but courts recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated?

• A) A de jure corporation
• B) A de facto corporation
• C) A corporation by estoppel
• D) A corporation by reservation
• E) An inactive corporation

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to changes in productive output or other measures of volume.

Operating Leverage

Operating leverage refers to the extent to which a company can increase its operating income by increasing revenue, highlighting the proportion of fixed costs in a company's cost structure.

Capital Intensive

A business process or industry that requires significant financial investment in capital assets like machinery and equipment, versus labor or operational costs.

Fixed Costs

Expenses that do not change with the level of production or business activity.