FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 34: Corporate Directors, Officers, and Shareholders

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Molly is a director and Ned is an officer of Online Education Inc. Liability for the torts of employees under their supervision may extend to

A) Molly only.
B) Ned only.
C) Molly and Ned.
D) none of the choices.

E) A) and B)
F) B) and C)

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

Directors are not answerable to the corporation for breaching their duty of care.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Dhani, Ezra, and Finn are the first directors on the board of Global Trading Corporation. Subsequent directors will be elected by a majority vote of Global's

Because of their positions within the corporation, directors must make full disclosure of any conflicts of interest with respect to corporate contracts.

Directors have a right to be notified of all board meetings.

To avoid potential liability for misconduct in corporate operations, directors can refrain from reasonable supervision of work delegated to

With respect to a corporation, a director is

Han is a shareholder of Insulation Inc. When the directors fail to undertake an action to redress a wrong suffered by the firm, Han files a suit on its behalf. Any damages recovered by the suit will go to the firm's

A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs.

If a board attempts to manipulate the shareholders' election of a director to reduce the shareholders' influence, they can challenge the election in court.

Under the business judgment rule, directors cannot be held liable for the negligence or mismanagement of corporate personnel.

Erin, a shareholder of Finance Inc., demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company. The firm refuses the request. On Erin's challenge, a court is most likely to hold that her request constitutes

Corporate officers have responsibility for all policymaking decisions necessary to the management of corporate affairs.

If a shareholder's derivative suit is successful, any damages recovered normally go into the corporation's treasury.

How many directors serve on a corporation's board can be set forth in the corporation's bylaws.

Corporate officers do not act as agents of the corporation.

The primary function of a corporation's officers is to authorize major corporate policy decisions.

A corporate officer is liable to the corporation or its shareholders for a bad business decision.

With respect to a corporation, an officer's rights are defined by

AstroStar, Inc.'s board of directors consists of three members-Eckhart, Dolan, and Macero. At a regular board meeting, the board selects Galiard as president of the corporation. Later, an audit reveals that during his term as president he has openly embezzled $500,000 from AstroStar. The same audit reveals that the board knew when it selected Galiard that he had been previously convicted of embezzlement. Can the corporation hold directors Eckhart, Dolan, and Macero personally liable?