Start-Up Corporation substantially complies with all conditions precedent to incorporation. Start-Up has
A. corporate existence by estoppel.
B. de facto existence.
C. de jure existence.
D. ultra vires existence.
Answer: C
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Purple Corporation pays $536,000 to acquire 40% of the equity securities of Blue, Inc. on May 5, 2019. In the journal entry to record this transaction ________.
A) Equity Investments—Blue Inc. will be credited for $536,000 B) Equity Investments—Blue Inc. will be debited for $536,000 C) Common Stock Holdings—Blue Inc. will be debited for $536,000 D) Revenue from Investments will be credited for $536,000
Al, an accountant, has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sale contract, he agrees that he will refrain from practicing accounting anywhere within a 60-mile radius of Redwood City for a period of two years. However, on weekends he returns to his
house in Redwood City, and when clients call him, he meets with them in his home. In this case: a. Al is in violation of the sale agreement, which contained restrictions that would probably be held to be valid. b. the agreement is invalid, because it is an illegal restraint on trade. c. the agreement is illegal, because it is a violation of public policy. d. the two-year provision is likely to be held invalid, because it is too long a period of time.
Financial leverage occurs because of the existence of fixed financial costs such as _____.?
A. ?insurance expenses B. ?preferred dividends C. ?common stock dividends D. ?depreciation E. ?rent
Asset Expected Return Beta
Stock A 9% 0.9 Stock B 11% 1.4 Risk-Free Asset 5% Consider the assets outlined in the table above. Which asset offers the best risk-return trade-off? A) Stock A B) Stock B C) The risk-free asset D) Either Stock A or Stock B as both have the same risk-return trade-off