1. Explain the general differences between a regular business corporation and an S Corporation.Provide an example of each.
2. Joe Green and Debbie Cartin would like to start a business involving themselves and D&S Equipment, Inc., a corporation that holds certain of their assets. Could they form a regular business corporation with Joe Green, Debbie Cartin, and D&S Equipment, Inc. being the shareholders? Why or why not?
3. Why might it be preferable to put information in the bylaws, as opposed to the articles of incorporation, when the statute provides that the information could be in either document?
4. Would the name "Barcena Brothers Furniture Store" be a valid corporate name in a state following the Model Business Corporation Act? Why or why not?
5. Why is the business judgment rule so important to both directors and shareholders? What would be some possible consequences if directors could not rely on the business judgment rule?
6. Who typically benefits when cumulative voting for the directors of a corporation is allowed?