Copr
10 Questions
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Test made test
Questions and Answers
- 1.In some states, a close corporation can operate without formal share holders or directors' meetings
- A.
True
- B.
False
- 2.A corp. is liable for the torts of its officers commited within the course and scope of employment
- A.
True
- B.
False
- 3.An officer is a fiduciary of a corp.
- A.
True
- B.
False
- 4.Preemptive rights entitle shareholders to bring a derivative suit against the corp.
- A.
True
- B.
False
- 5.Only certain funds are legally available for paying dividends
- A.
True
- B.
False
- 6.Damages recovered in a shareholders derivative suit are paid to the shareholder who filed the suit
- A.
True
- B.
False
- 7.Generally, shareholders are not personaly responsible for the debts of the corp.
- A.
True
- B.
False
- 8.Directors, but not officers owe a duty of loyalty to the corp
- A.
True
- B.
False
- 9.The business judgment rule makes a director liable for losses to the firm in most cases.
- A.
True
- B.
False
- 10.State corp laws are entirely uniform.
- A.
True
- B.
False
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