Question 1

Which state in the U.S. has more than half of the publicly traded corporations?

Accepted Answer

A)   Florida
B)   Texas
C)   Connecticut
D)   Delaware
E)   New YorkF) All of the above
G) A) and E)

Question 2

Which of the following is false regarding the liability of directors and officers for criminal behavior in the U.S.?

Accepted Answer

A)   Directors and officers can be held personally responsible for their own crimes.
B)   Directors and officers can be held personally responsible for the crimes of other employees within the organization when they have failed to adequately supervise the employee's behavior.
C)   According to the responsible person doctrine, an officer can be held criminally liable for conduct of an employee if the court determines that a responsible person would have known about and could have prevented the illegal activity.
D)   Directors and officers who use insider information to trade the corporation's stock for a profit can be held liable for breaching their fiduciary duty.
E)   A court may not find a corporate officer criminally liable for conduct of an employee unless the officer profited personally from the illegal activity.F) A) and E)
G) A) and D)

Question 3

________ have business contacts with the corporation.

Accepted Answer

A)   Association directors
B)   Anticipated directors
C)   Outlier directors
D)   Affiliated directors
E)   Unaffiliated directorsF) B) and E)
G) C) and D)

Question 4

For purposes of shareholders meetings, what is considered a majority vote?

Accepted Answer

A)   The vote of at least 10 percent of shareholders total.
B)   The vote of ½ of all outstanding shareholders.
C)   The vote of 2/3 of all outstanding shareholders.
D)   The vote of 90 percent of shareholders who make up a quorum.
E)   The majority of the shares represented at a shareholder meeting where there is a quorum.F) B) and E)
G) A) and E)

Question 5

Directors or officers who violate their duty of loyalty are self-dealing.

Accepted Answer

A) True 
 B)False

Question 6

[Kite Sales] Tatiana is president of a business that manufactures kites. The kites of her company, ABC Kites, are sold to large toy stores. After Tatiana learned a great deal about kites at ABC, she started to make kites at home. She started selling kites to friends. She also started to make inquiries regarding selling her kites to larger toy stores in the area, and she began making a few sales to them. Her plan was to start small and then leave ABC after she had increased sales. She did not work on her side project while she was on the clock with ABC. Some of the directors learned about her kite sales and accused her of wrongdoing. Tatiana denied any wrongdoing and pointed out that she did not work on her project while she was on the job with ABC.
-By selling the kites, Tatiana was involved in which of the following objectionable activities, if any?

Accepted Answer

A)   She was not involved in any objectionable activities.
B)   She prevented corporate opportunity.
C)   She prevented profit maximization.
D)   She committed private-profit allocation.
E)   She committed corporate profit reduction.F) C) and E)
G) A) and D)

Question 7

A stock subscription agreement signed before incorporation may obligate a person to purchase shares in the corporation.

Accepted Answer

A) True 
 B)False

Question 8

A board of directors may take no action that benefits a director in his or her personal capacity.

Accepted Answer

A) True 
 B)False

Question 9

One method that restricts stock's transferability is known as the ________.

Accepted Answer

A)   right of first refusal
B)   initial refusal requirement
C)   first rights of shareholders.
D)   purchase rights of shareholders.
E)   second chance purchase.F) None of the above
G) A) and C)

Question 10

Shareholder meetings require a(n)  ________, generally the presence of the shareholders holding more than 50 percent of the outstanding shares.

Accepted Answer

A)   proxy
B)   quantity
C)   majority
D)   quorum
E)   anteF) B) and C)
G) D) and E)

Exam 39: Corporations: Directors, Officers, and Shareholders

Which of the following is false regarding the liability of directors and officers for criminal behavior in the U.S.?

Correct Answer
verified

A board of directors may take no action that benefits a director in his or her personal capacity.

Correct Answer
verified

Directors or officers who violate their duty of loyalty are self-dealing.

Correct Answer
verified

Which state in the U.S. has more than half of the publicly traded corporations?

Correct Answer
verified

A stock subscription agreement signed before incorporation may obligate a person to purchase shares in the corporation.

Correct Answer
verified

Correct Answer
verified

Shareholder meetings require a(n) ________, generally the presence of the shareholders holding more than 50 percent of the outstanding shares.

Correct Answer
verified

One method that restricts stock's transferability is known as the ________.

Correct Answer
verified

________ have business contacts with the corporation.

Correct Answer
verified

For purposes of shareholders meetings, what is considered a majority vote?

Correct Answer
verified

Exam 39: Corporations: Directors, Officers, and Shareholders

Which of the following is false regarding the liability of directors and officers for criminal behavior in the U.S.?

Correct AnswerverifiedShow Answer

A board of directors may take no action that benefits a director in his or her personal capacity.

Correct AnswerverifiedShow Answer

Directors or officers who violate their duty of loyalty are self-dealing.

Correct AnswerverifiedShow Answer

Which state in the U.S. has more than half of the publicly traded corporations?

Correct AnswerverifiedShow Answer

A stock subscription agreement signed before incorporation may obligate a person to purchase shares in the corporation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Shareholder meetings require a(n) ________, generally the presence of the shareholders holding more than 50 percent of the outstanding shares.

Correct AnswerverifiedShow Answer

One method that restricts stock's transferability is known as the ________.

Correct AnswerverifiedShow Answer

________ have business contacts with the corporation.

Correct AnswerverifiedShow Answer

For purposes of shareholders meetings, what is considered a majority vote?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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