 |
| 1 | |
The three (3) major groups of individuals within a corporation are __________. |
| | A) | Directors, officers, and shareholders |
| | B) | Principals, officers, and shareholders |
| | C) | Trustees, directors, and principals |
| | D) | Trustees, officers and directors |
|
|
|
| 2 | |
__________ typically manage the "day-to-day" business of the firm. |
| | A) | Directors |
| | B) | Officers |
| | C) | Shareholders |
| | D) | Proxy representatives |
|
|
|
| 3 | |
__________ typically approve/disapprove of major decisions of the board. |
| | A) | Directors |
| | B) | Officers |
| | C) | Shareholders |
| | D) | Proxy representatives |
|
|
|
| 4 | |
When directors or officers violate their duty of loyalty, they are self-__________. |
| | A) | Aggrandizing |
| | B) | Serving |
| | C) | Centered |
| | D) | Dealing |
|
|
|
| 5 | |
In some corporations, the majority shareholder owns such a significant portion of the corporation's stock as to essentially control the firm. When that individual sells his or her shares, control of the company shifts to another individual. Thus, the majority shareholder in this situation has a(n) __________ duty to act with care and loyalty when selling the shares. In closely-held corporations, a breach of this duty is known as __________. |
| | A) | Executive; opprobrious behavior |
| | B) | Fiduciary; opprobrious behavior |
| | C) | Executive; oppressive conduct |
| | D) | Fiduciary; oppressive conduct |
|
|
|
| 6 | |
According to the ___________ doctrine, a court may find a corporate officer criminally liable regardless of the extent to which the officer took part in the criminal activity. |
| | A) | Responsible person |
| | B) | Irresponsible person |
| | C) | Contributory negligence |
| | D) | Comparative negligence |
|
|
|
| 7 | |
According to the __________ rule, directors and officers are not liable for decisions that harm the corporation if they were acting in good faith at the time of the decision. |
| | A) | Responsible person |
| | B) | Fair dealing |
| | C) | Business judgment |
| | D) | Good Samaritan |
|
|
|
| 8 | |
Corporate directors have all but which of the following rights within a corporation? |
| | A) | Compensation |
| | B) | Publicity |
| | C) | Participation |
| | D) | Indemnification |
|
|
|
| 9 | |
__________ certificates represent proof of ownership in the corporation. |
| | A) | Corporate |
| | B) | Currency |
| | C) | Stock |
| | D) | Commercial |
|
|
|
| 10 | |
__________ rights give preference to shareholders to purchase shares of a new issue of stock. |
| | A) | Participatory |
| | B) | Preemptive |
| | C) | Prerogative |
| | D) | None of the above |
|
|
.