If the proper procedure for incorporation has been followed, the corporation has a legal right to exist and is called a(n): ______.

Question

Quizplus · Accepted Answer

A de jure corporation is a corporation that has followed the proper procedures for incorporation and has legal recognition as a separate entity from its owners. A corporation by estoppel is one that is recognized as a corporation because it has acted like one and others have relied on that representation. A de facto corporation is a corporation that has not followed all the proper procedures for incorporation, but is recognized as a corporation because it has acted like one and its owners have acted as if it were a corporation. An ultra vires corporation is one that has exceeded its legal authority to act.

If the Proper Procedure for Incorporation Has Been Followed, the Corporation