Exam 28: Corporate Governance and the Sarbanes-Oxley Act

A duty that directors and officers have not to act adversely to the interests of the corporation and to subordinate their personal interests to those of the corporation and its shareholders is known as ________.

Which of the following is true of the composition of a board of directors?

Which of the following is a similarity between inside directors and outside directors of a corporation?

A director may fulfill his duty of loyalty by usurping a corporate opportunity.

Which of the following would be seen as a breach of the duty of loyalty by a corporate officer?

The board of directors is responsible for formulating policy decisions that affect the management,supervision,control,and operation of the corporation.

Which of the following is true of an audit committee?

The written document submitted by a person who has been authorized by a shareholder to vote the shareholder's shares at the shareholders' meetings in the event of the shareholder's absence is known as ________.

Which of the following is true of the notice of a shareholders' meeting?

Stock dividends are a distribution of corporate assets.

An arrangement in which the shareholders transfer their stock certificates to a trustee is known as ________ trust.

Which of the following is true of the Sarbanes-Oxley Act?

If a shareholder dominates a corporation and misuses it for improper purposes,a court of equity can disregard the corporate entity and hold the shareholder of the corporation personally liable for the corporation's debts and obligations.

Define preemptive rights and identify their uses.

Which of the following is true of the business judgment rule?

Explain the alter ego doctrine and examine its fairness.

Commingle of personal and corporate assets is allowed under the alter ego doctrine.

Which of the following is true about dividends?

A member of the board who is also an officer of the corporation is known as a(n)________.

________ voting is a system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open.