Exam 40: A: Corporate Directors,officers, Shareholders

Flite-Craft Corporation makes and sells aircraft parts.In most states,the minimum number of directors that must be present before Flite-Craft's board could transact its business is

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Question 1

Correct Answer:

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Dividends can be paid in cash.

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(True/False)

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Question 2

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True

Guy is Hot Java Company's majority shareholder.Guy decides to sell his Hot Java stock.The sale will be an effective transfer of the control of the company.Does Guy owe a duty to Hot Java or its minority shareholders in this situation?

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Question 3

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Yes.A single shareholder-or a few share?hold?ers acting together-who owns enough stock to exer?cise de facto control over a cor?poration owes the cor?poration and its minority share?holders a fidu?ciary duty when transfer?ring those shares.A breach of this fiduciary duty by those who control a closely held corporation can constitute what is known as oppressive conduct.A breach of this duty may also occur if a majority shareholder attempts to exclude minority shareholders from receiving certain benefits from participating in the firm.Thus,for example,refusing to perform a valuation of the company,or denying the minority shareholders access to corporate information to which they would otherwise entitled,would constitute a violation of this duty.

Sylvia is an officer of Triad Hotel Company.As an officer,with respect to the corporation,Sylvia is

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Question 4

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

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Question 5

For shareholders to act during a meeting,a quorum must be present.

(True/False)

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Question 6

Shareholders must attend a shareholders' meeting to vote their shares.

(True/False)

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Question 7

An outside director is a director who is also an officer of the corporation.

(True/False)

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Question 8

Cara and Dru are officers of EZ Trucking Corporation.As cor?porate officers,the rights of Cara and Dru are

(Multiple Choice)

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Question 9

In most states,a director cannot be removed without cause unless shareholders have reserved the right.

(True/False)

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Question 10

Directors and officers must subordinate the welfare of the corporation to their personal interests.

(True/False)

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Question 11

Orin is a shareholder of Pinkwater Corporation.In some states,Orin might in?cur personal liability for Pinkwater obligations if he

(Multiple Choice)

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Question 12

In most states,one individual cannot be both an officer and a director.

(True/False)

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Question 13

Zero Sum Games Corporation has forty-three shareholders.The minimum number that must be present at a meeting for a shareholders' vote is

(Multiple Choice)

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Question 14

A shareholder's right to inspect corporate books and records is unlimited.

(True/False)

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Question 15

Many states permit a corporate board to have fewer than three directors.

(True/False)

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Question 16

Directors are entitled to use confidential corporate information for their personal advantage.

(True/False)

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Question 17

Mitch is a director and officer of Numero Uno,Inc.Mitch makes a market?ing decision that results in a dramatic decrease in profits for Numero Uno and its shareholders.The shareholders accuse Mitch of breaching his fiduci?ary duty to the corporation.What is Mitch's best defense against this ac?cu?sation? Later,a resolution comes before the Numero Uno board 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?

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Question 18

Whit is a director of Vids Corporation.With respect to policymaking decisions necessary to the management of corporate affairs,Whit and the other Vids directors have responsibility for

(Multiple Choice)

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Question 19

Each director has a right of access to the corporation's books and records,facilities,and premises.

(True/False)

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Question 20

Showing 1 - 20 of 42

Exam 40: A: Corporate Directors,officers, Shareholders

Flite-Craft Corporation makes and sells aircraft parts.In most states,the minimum number of directors that must be present before Flite-Craft's board could transact its business is

Dividends can be paid in cash.

Guy is Hot Java Company's majority shareholder.Guy decides to sell his Hot Java stock.The sale will be an effective transfer of the control of the company.Does Guy owe a duty to Hot Java or its minority shareholders in this situation?

Sylvia is an officer of Triad Hotel Company.As an officer,with respect to the corporation,Sylvia is

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

For shareholders to act during a meeting,a quorum must be present.

Shareholders must attend a shareholders' meeting to vote their shares.

An outside director is a director who is also an officer of the corporation.

Cara and Dru are officers of EZ Trucking Corporation.As cor?porate officers,the rights of Cara and Dru are

In most states,a director cannot be removed without cause unless shareholders have reserved the right.

Directors and officers must subordinate the welfare of the corporation to their personal interests.

Orin is a shareholder of Pinkwater Corporation.In some states,Orin might in?cur personal liability for Pinkwater obligations if he

In most states,one individual cannot be both an officer and a director.

Zero Sum Games Corporation has forty-three shareholders.The minimum number that must be present at a meeting for a shareholders' vote is

A shareholder's right to inspect corporate books and records is unlimited.

Many states permit a corporate board to have fewer than three directors.

Directors are entitled to use confidential corporate information for their personal advantage.

Whit is a director of Vids Corporation.With respect to policymaking decisions necessary to the management of corporate affairs,Whit and the other Vids directors have responsibility for

Each director has a right of access to the corporation's books and records,facilities,and premises.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course