FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 31: Management and Ownership of a Corporation

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Shannon is an officer for Turista Shirts Corporation.Due to a bad business decision on Shannon's part,the company's sales decrease.Shannon is most likely liable for breach of 

A)  ​the duty of care. 
B)  ​the duty of loyalty. 
C)  ​the business judgment rule. 
D)  ​none of the choices.

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

Since stock is intangible personal property,the ownership right to stock exists independently of a stock certificate.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Honi is a director of Italian Desserts,Inc.Honi opposes a tender offer that is in the company's best interest because its acceptance would cost her position as a director.Honi is most likely liable for a breach of 

Lewis is a director of Mines & Refineries,Inc.Using information that is not available to the public,Lewis makes a profit trading in Mines & Refineries stock.Lewis is most likely liable for breach of 

A board of directors can delegate some functions to corporate officers.

Denise,Ervin,and Flem occupy the positions of directors on the board of Gallery Corporation.As directors,they may NOT 

Thor Power Products Corporation permits its directors to be elected by cumulative voting.This 

A majority shareholder does not owe a fiduciary duty to minority shareholders under any circumstances.

Shareholders elect and remove the directors of the corporation.

If a corporation fails,the shareholders are all individually liable.

Bret and Courtney form Delite Day Care,Inc.Ultimate responsibility for policy decisions necessary to the management of corporate affairs rests with Delite's 

Bea is a shareholder of Candy Confections Corporation.The right to inspect corporate books and records is 

Larry is a shareholder for Custom Colors,Inc.If Custom Colors fails,Larry will 

Directors must refrain from self-dealing.

Mitch is a director and officer of Numero Uno,Inc.Mitch makes a marketing decision that results in a dramatic decrease in profits for Numero Uno and its shareholders.The shareholders accuse Mitch of breaching his fiduciary duty to the corporation.What is Mitch's best defense against this accusation? Later,the Numero Uno board considers a resolution for the firm to compete with One-of-a-Kind Corporation.Mitch is a director and shareholder of One-of-a-Kind.What is Mitch's responsibility in this situation?​

Lovey is a shareholder of Matchless Corporation with preemptive rights.With these rights,Lovey can 

Fact Pattern 31-1Ray is a shareholder of Small Biz Company (SBC) . When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf. -Refer to Fact Pattern 31-1.Any damages recovered by Ray's suit will go to 

Vacancies occur on the board of directors if a director dies or resigns,but a new position cannot be created by an amendment to the articles of incorporation.

The minimum number of members of a body of officials that must be present before business can validly be transacted is known as a quorum.

Natalie is a shareholder of Off-Road Vehicle Company.As a shareholder,Natalie does not have