Question 1

The board of directors of Integral Components Corporation consists of Frida,Gayla,and Hart.A quorum is the minimum number of these directors

Accepted Answer

A) who must be at odds in a dispute to call for its resolution. 
B) who must be present to validly transact business. 
C) that the shareholders may remove from office at any one time. 
D) whose positions must be vacant to warrant an election. 
A) who must be at odds in a dispute to call for its resolution. 
B) who must be present to validly transact business. 
C) that the shareholders may remove from office at any one time. 
D) whose positions must be vacant to warrant an election.

Question 2

The initial board of directors of a corporation is normally elected at the first annual shareholders' meeting by a majority vote of the shareholders.

Accepted Answer

A) True 
 B)False

Question 3

Odell is a director of Price Rite,Inc.As a director,with respect to the corporation,Odell is

Accepted Answer

A) a fiduciary. 
B) a forum. 
C) a proxy. 
D) a quorum. 
A) a fiduciary. 
B) a forum. 
C) a proxy. 
D) a quorum.

Question 4

Some states permit a corporate board to have fewer than three directors.

Accepted Answer

A) True 
 B)False

Question 5

Persons whose names appear in a corporation's stock book are ordinarily entitled to notice of shareholders' meetings and the right to vote.

Accepted Answer

A) True 
 B)False

Question 6

Pursuing a new product line is a decision that would be made by shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Louiseis a director for Icy Ices,Inc.Louise is also a director for Creamy Creams,Inc.When Icy Ices enters into a contract with Creamy Creams,Louise

Accepted Answer

A) must resign from one of the boards. 
B) must resign from both boards. 
C) must make a full disclosure of any conflicts of interest and abstain from voting on the proposed transaction. 
D) need not do anything. 
A) must resign from one of the boards. 
B) must resign from both boards. 
C) must make a full disclosure of any conflicts of interest and abstain from voting on the proposed transaction. 
D) need not do anything.

Question 8

A director usually serves on a corporation's board for a life term.

Accepted Answer

A) True 
 B)False

Question 9

Fiona owns one share of stock in SK8 Boards Corporation,as evidenced by a stock certificate.Fiona loses the certificate.Her ownership of the stock is

Accepted Answer

A) forfeited immediately. 
B) forfeited within ten days of a third party's claim to ownership. 
C) forfeited within thirty days if she cannot find the certificate. 
A) forfeited immediately. 
B) forfeited within ten days of a third party's claim to ownership. 
C) forfeited within thirty days if she cannot find the certificate.

Question 10

Rhea is a director of Spex Corporation,which makes and sells sunglasses and other eyewear.As a Spex director,Rhea sits on the board,which

Accepted Answer

A) governs Spex. 
B) is governed by the Spex incorporators. 
C) is governed by the Spex officers. 
D) is governed by the Spex shareholders. 
A) governs Spex. 
B) is governed by the Spex incorporators. 
C) is governed by the Spex officers. 
D) is governed by the Spex shareholders.

Exam 25: Corporate Directors, officers, and Shareholders

The board of directors of Integral Components Corporation consists of Frida,Gayla,and Hart.A quorum is the minimum number of these directors

The initial board of directors of a corporation is normally elected at the first annual shareholders' meeting by a majority vote of the shareholders.

Odell is a director of Price Rite,Inc.As a director,with respect to the corporation,Odell is

Some states permit a corporate board to have fewer than three directors.

Persons whose names appear in a corporation's stock book are ordinarily entitled to notice of shareholders' meetings and the right to vote.

Pursuing a new product line is a decision that would be made by shareholders.

Louiseis a director for Icy Ices,Inc.Louise is also a director for Creamy Creams,Inc.When Icy Ices enters into a contract with Creamy Creams,Louise

A director usually serves on a corporation's board for a life term.

Fiona owns one share of stock in SK8 Boards Corporation,as evidenced by a stock certificate.Fiona loses the certificate.Her ownership of the stock is

Rhea is a director of Spex Corporation,which makes and sells sunglasses and other eyewear.As a Spex director,Rhea sits on the board,which

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