alexandraj0
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Managing Legal Risk in the Hospitality Industry Part II, Chapter 2

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alexandraj0
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Chapter 2: Running a Corporation

Question 1 of 3

1

Companies often choose to incorporate in Delaware. Which of the following is NOT a reason why corporations choose Delaware?

Select one of the following:

  • Delaware requires only a majority to agree to business decisions.

  • Chancery court (in Delaware) hears nothing but business cases and with judges who are experts in corporate law.

  • Delaware has an established body of precedent, therefore case outcomes are easy to predict.

  • Delaware offers the ability to incorporate under federal law i.e. USA wide.

Explanation

Question 2 of 3

1

All corporations must use one of the following words in their name: corporation, incorporated, company, or limited.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 3

1

Incorporators have a substantial stake in the company of which they incorporate.

Select one of the following:

  • True
  • False

Explanation