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Copr

10 Questions
Industry Quizzes & Trivia

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