Which of the following statements pertains to a de jure corporation?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

A de jure corporation is one that has been properly formed according to the statutory requirements set forth by the laws of its jurisdiction. This means that it has filed the necessary documents, such as articles of incorporation, and has complied with all regulatory requirements to achieve legal status. As a result, a de jure corporation enjoys the protections and privileges granted by law, including limited liability for its shareholders and the ability to enter into contracts.

The other options describe situations that do not reflect the status of a de jure corporation. For instance, a corporation that acts as if it exists but lacks legal standing falls under the concept of a de facto corporation, which does not meet all the legal formalities required for de jure status. Similarly, being established under common law rules does not apply, as incorporation and corporate existence are governed by statutory law rather than common law principles. Lastly, a corporation that does not exist in any legal form lacks the basis of corporate existence entirely, which is contrary to what defines a de jure corporation. Therefore, the hallmark of a de jure corporation is its fulfillment of all legal incorporation requirements, ensuring its recognized and lawful existence.

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