Exam 20: Corporations

Mitch is a director and officer of Numero Uno, Inc. Mitch makes a marketing decision that results in a dramatic decrease in profits for Numero Uno and its shareholders. The shareholders accuse Mitch of breaching his fiduciary duty to the corporation. What is Mitch's best defense against this accusation? Later, the Numero Uno board considers a resolution for the firm to compete with One-of-a-Kind Corporation. Mitch is a director and shareholder of One-of-a-Kind. What is Mitch's responsibility in this situation?

Hudson and Ilsa want to market a new line of kayaks and related gear under the brand name Journeys as a corporation-Journeys Inc. To avoid income taxes at the corporate level, they should form

One factor that frequently causes the courts to pierce the corporate veil is that a corporation was set up never to make a profit.

A corporation can be dissolved voluntarily but not by a shareholders' vote.

Lewis is a director of Mines & Refineries, Inc. Using information that is not available to the public, Lewis makes a profit trading in Mines & Refineries stock. Lewis is most likely liable for breach of

A receiver is always appointed by a court if the dissolution of a corporation is involuntary.

Dollars & Sense, Inc., is incorporated in the state of New Jersey and is doing business in the state of New York. In New York, Dollars & Sense is properly referred to as

Firms are obligated to return a principal amount per share to each holder of common stock.

Shareholders appoint corporate officers and other executive employees.

In corporate law, acts of a corporation that are beyond its express or implied powers are de facto or de jure acts.

Bret and Courtney form Delite Day Care, Inc. Ultimate responsibility for policy decisions necessary to the management of corporate affairs rests with Delite's

The board of Management Consultants, Inc. (MCI), can delegate work to