Work sheet below, answer question on words.Take Test: Unit VIII Assessment

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Question 1

 If an employee of a corporation, while carrying out the duties of their job, does something that causes injury or damage to a third party, the corporation will be liable for those injuries or damage under the doctrine of:

unlimited liability.

centralized management.

respondeat superior.

ultra vires.

6 points  

Question 2

 A bond is:

an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation.

a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond.

a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond.

an ownership interest in the corporation that allows the holder to vote in corporate elections.

6 points  

Question 3

 With respect to the formation of a corporation, a subscriber is:

a person who has purchased stock in a newly formed corporation.

a person who has offered to purchase a specific number of shares in a corporation that is to be formed.

a person who has expressed an interest in purchasing stock in a corporation that is to be formed but who has not committed to the number of shares to be purchased.

a person who begins the process of forming a new

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