Question 1

Generally,managers that make informed decisions will not be liable even if their decision turned out badly.

Accepted Answer

A) True 
 B)False

Question 2

List and discuss the three ways to acquire control of a corporation.

Accepted Answer

Generally the three methods of acquiring

Question 3

When establishing takeover defenses,shareholder welfare must be the board's primary concern.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is correct concerning anti-takeover efforts?

Accepted Answer

A)  Most states have passed laws to deter hostile takeovers, but these statutes have not totally eliminated hostile takeovers. 
B)  Federal statutes have been more effective than state statutes in eliminating hostile corporate takeovers. 
C)  The most effective federal statute has been the Poison Pill Act. 
D)  Both b and c are correct. 
A)  Most states have passed laws to deter hostile takeovers, but these statutes have not totally eliminated hostile takeovers. 
B)  Federal statutes have been more effective than state statutes in eliminating hostile corporate takeovers. 
C)  The most effective federal statute has been the Poison Pill Act. 
D)  Both b and c are correct.

Question 5

In the late 1960s a shareholder of the company that owned the Chicago baseball team sued the company because the directors refused to install lights in Wrigley Field.The court decided that the directors:

Accepted Answer

A)  had a rational purpose for not installing lights and were not liable for doing anything improper. 
B)  were not protected by the business judgment rule. 
C)  had not acted with any rational purpose and were liable to its shareholders for damages caused by their actions. 
D)  had the right to make decisions for the team without any concern for the desires of the shareholders. 
A)  had a rational purpose for not installing lights and were not liable for doing anything improper. 
B)  were not protected by the business judgment rule. 
C)  had not acted with any rational purpose and were liable to its shareholders for damages caused by their actions. 
D)  had the right to make decisions for the team without any concern for the desires of the shareholders.

Question 6

Amy is on the board of directors of Computers Plus.Computers Plus is looking for a warehouse to purchase.Amy owns a warehouse.In order for Amy to sell her warehouse to Computers Plus:

Accepted Answer

A)  the transaction must be fair to both Amy and Computers Plus. 
B)  the disinterested members of the board of directors may approve the transaction. 
C)  she must resign her position on the board of directors of Computers Plus before any negotiations for the warehouse begin. 
D)  a court must review the opportunity to determine its favorability. 
A)  the transaction must be fair to both Amy and Computers Plus. 
B)  the disinterested members of the board of directors may approve the transaction. 
C)  she must resign her position on the board of directors of Computers Plus before any negotiations for the warehouse begin. 
D)  a court must review the opportunity to determine its favorability.

Exam 34: Corporate Management

Generally,managers that make informed decisions will not be liable even if their decision turned out badly.

List and discuss the three ways to acquire control of a corporation.

When establishing takeover defenses,shareholder welfare must be the board's primary concern.

Which of the following is correct concerning anti-takeover efforts?

In the late 1960s a shareholder of the company that owned the Chicago baseball team sued the company because the directors refused to install lights in Wrigley Field.The court decided that the directors:

Amy is on the board of directors of Computers Plus.Computers Plus is looking for a warehouse to purchase.Amy owns a warehouse.In order for Amy to sell her warehouse to Computers Plus:

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

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Intentional Torts And Business Torts

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International Law

Introduction To Contracts

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Creating A Negotiable Instrument

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Starting A Business

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