hapter 29-Work Set TRUE-FALSE QUESTIONS artificial being. an 1. A corporation is 2. A corporation that is formed in a country other than the United States, but which does business in the United States, is a foreign corporation. 3. Stocks represent the purchase of corporate ownership. 4. The rights of shareholders are established only in the articles of incorporation. EDamages recovered in a shareholder's derivative suit are normally paid to the shareholder who brought the suit. 6 As a general rule, shareholders are not personally responsible for the debts of the corporation 7. Cumulative voting allows minority shareholders to obtain representation on the board of directors